Warren Buffett has stepped down as chairman of Berkshire Hathaway, ending more than half a century at the head of the company's board and completing another stage of one of corporate America's most closely watched succession plans.

Berkshire announced Friday that Buffett, 96, had been named chairman emeritus effective immediately and would remain a director. His eldest son, Howard G. Buffett, was elected chairman after serving on the board since 1993. Susan Decker will continue as lead independent director, the company said.

Greg Abel remains chief executive and is responsible for running the conglomerate. Abel took over the CEO role at the start of this year after years of managing Berkshire's non-insurance businesses. Warren Buffett described the division of responsibilities directly in a letter to shareholders: Abel runs the company, while Howard will protect its culture and values.

The shift separates operational control from the chairmanship. Howard Buffett is not being installed as chief executive or as the investor responsible for every capital-allocation decision. His role is board leadership and institutional continuity, while Abel oversees businesses ranging from insurance and energy to the BNSF railroad, manufacturing, services and retail.

Buffett took control of the struggling New England textile company in 1965 and had served as chairman since 1970. He transformed Berkshire into a conglomerate worth roughly $1 trillion by using insurance premiums to fund investments and acquisitions, then allowing many acquired companies to operate with unusual autonomy. Berkshire became the first non-technology U.S. company to reach a $1 trillion market value in 2024.

The performance record explains why the transition attracts attention far beyond Omaha. During Buffett's time as chief executive, Berkshire produced a compounded annual gain of about 19.9%, compared with roughly 10.4% for the S&P 500, according to Associated Press reporting. The company now also holds a cash pile of about $365 billion, giving Abel enormous capacity but also pressure to find investments large enough to matter.

Buffett said the timing was right because Abel had fully assumed the chief executive's responsibilities. He wrote that he remained confident about Berkshire's future and would stay a shareholder alongside other owners. The company disclosed no new health concern. Berkshire shares moved only slightly lower Friday, suggesting that markets viewed the announcement as an expected transition rather than an emergency.

The orderly handoff is significant because founder-led and personality-driven companies often avoid succession until a crisis forces it. Buffett's reputation became an asset in its own right: investors trusted not only Berkshire's balance sheet, but his judgment, restraint and willingness to wait. No successor can reproduce that identity simply by occupying the same office.

Investors will now watch how Abel uses Berkshire's cash, how much autonomy operating managers retain and whether major acquisitions still clear the company's demanding price discipline. The challenge is not to imitate Buffett's personality. It is to preserve a decision process that can reject fashionable deals, tolerate inactivity and act decisively when markets finally offer value.

Berkshire's answer is structural. Abel holds executive authority, Howard Buffett guards board culture, and Decker retains independent oversight. That arrangement acknowledges both the value and the danger of a powerful founder's legacy. Culture can preserve long-term thinking, but it can also become an excuse to resist necessary change. Independence matters most when a revered leader is no longer making the final decision.

The father-to-son chairmanship will inevitably raise questions about family influence. Those questions are legitimate, even though Howard Buffett has spent more than three decades on the board and is not taking the CEO position. Shareholders should judge the arrangement through governance, disclosure and results rather than sentiment. A celebrated name is not a substitute for accountability.

Buffett's achievement was not merely selecting stocks. He built an American institution that rewarded patience, decentralized management and credibility over financial fashion. The final test of that achievement begins now: whether Berkshire can retain those strengths without depending on the individual who made them famous. A succession plan succeeds only when the company remains disciplined after the applause ends.