Warren Buffett is giving up the role he’s held since 1970. He says 1 thing convinced him the time was right

 The investor announced that he is stepping down as chairman of Berkshire Hathaway. He says one person played a critical role in the timing of his decision.

Warren Buffett is stepping down.

On Friday, the 96-year-old investor announced in a letter to shareholders that he will give up his position as chairman of Berkshire Hathaway, a role he took on in 1970. He will hand the reins to his son Howard Buffett.

Effective immediately, Howard Buffett will become chairman emeritus. In the letter, Buffett writes that his decision was made possible, in part, by his trust in Berkshire Hathaway CEO Greg Abel. 

“My expectations for him were sky high from the start, and he has exceeded them,” Buffett wrote. 

Abel took over as chief executive in May 2025. “He has been making the decisions that matter for some time now, and I have not had to think twice about any of them,” the investor wrote. 

Buffett has previously praised Abel’s efforts to shape Berkshire Hathaway’s future.   

In June, he applauded the new CEO’s $6.8 billion deal to acquire Taylor Morrison Home. 

“Greg did that faster than I could have done it, smoother than I could have done it, and I never talked to the CEO. He has launched.” Buffett told CNBC. 

In his Friday letter, Buffett told shareholders that he is confident the storied multinational conglomerate “is in excellent hands.” 

Another factor played a role in Buffett’s decision to step down: his age. 

“Father Time always wins,” Buffet wrote. “He has, however, been generous with me. He has given me the opportunity to see Berkshire reach a point where I am more confident than ever about what lies ahead.”

Howard is no stranger to Berkshire Hathaway.

He served as director for 33 years. In a press release, Berkshire Hathaway confirmed that the transition is “consistent with the company’s long-standing succession plan.” 

Buffett acknowledged that his son’s time at the company is important, noting that Howard’s decades-long experience “is a longer apprenticeship than I served before taking the reins at the age of 34.”

While Abel will sit at the helm of the Omaha, Nebraska-based company, Buffett noted that Howard will “guard its culture and values – both worth more than anything on our balance sheet.”

Even though Buffett is stepping down as chairman, there’s one role he will still retain: shareholder.

“I look forward to remaining a shareholder alongside you,” he noted.