Warren Buffett will remain with Berkshire Hathaway as chairman

Billionaire Warren Buffett will remain with Berkshire Hathaway as chairman of the board when vice chairman Greg Abel takes over as chief executive in 2026.

The board of directors at the cash-rich conglomerate have voted to keep the famous 94-year-old investor as head of the board, a decision likely to relieve investors worried about Berkshire’s remarkable winning streak as the US and global economies are beset by tariff shocks, financial turmoil and a growing risk of recession.

The board in the same meeting on Sunday also approved Mr Buffett’s chosen successor as chief executive, veteran Berkshire executive Greg Abel, 62.

In a surprise announcement on Saturday, Mr Buffett said he would step down from that top spot at the end of the year.

Berkshire Class B shares fell nearly 3% before the opening bell on Monday.

Macrae Sykes, portfolio manager at Gabelli Funds, praised the transparent way Mr Buffett announced the transition at the meeting and believes investors can have confidence that he is not going anywhere.

“Retaining the position of chairman means he can continue to mentor Greg and the Berkshire leaders, while also providing additional intellectual capacity when the inevitable time for more major capital allocation occurs,” Mr Sykes said.

In six decades at the helm, Mr Buffett turned a Massachusetts textile company into a sprawling but nimble conglomerate that owns everything from Daily Queen and See’s Candies to BNSF Railway and giant insurers.

As the company grew, his reputation grew with it as shares of Berkshire Hathaway climbed steadily, exceeding major indexes by wide margins and returning an average 19.9% each year versus 10.4% for the Standard & Poor’s 500.

The decision to continue with the so-called Sage of Omaha as head of the board came amid speculation that Howard Buffett, the second-born of the investor’s three children, would move into that spot. The older Buffett has said that after he dies he would like Howard to take over as chairman.

A current vice-chairman, Mr Abel, will take over as chief executive as big questions hover over the company. Mr Buffett himself has said President Donald Trump’s tariffs were a big mistake. There are also worries that Berkshire might not able to avoid the fate of most conglomerates — forced to break up to recapture focus.

Then there is Berkshire’s 348 billion dollars in cash.

Buffett says he does not see many bargains to invest that money in now, not even Berkshire’s own stock, but assured some of the estimated 40,000 attendees of the company’s celebratory weekend annual meeting in Omaha, Nebraska, that one day the company would be “bombarded with opportunities”.

Mr Abel, a low-key Canadian with a love a hockey, has been overseeing many of Berkshire’s non-insurance businesses for years, but has not been deciding where to invest the company’s cash.

Mr Buffett said his trust in Mr Abel can be seen in where he is putting his money.

“I have no intention — zero — of selling one share of Berkshire Hathaway. I will give it away eventually,” Mr Buffett said. “The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine.”