The End of an Era: Warren Buffett Steps Down As Berkshire Hathaway Chairman
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Mm-hmm. Warren Buffett steps down as chairman of Berkshire Hathaway, closing out a chapter in investing history. Plus, private equity was already having a hard year. Then came higher interest rates.
When that industry is hurting, it affects the whole financial system.
And why Disney just hired its first chief technology officer? It's Friday, September 18th. I'm Alex Ossoleff for the Wall Street Journal. This is the PM edition of What's News: the top headlines and business stories that move the world today. Warren Buffett is stepping down as chairman of Berkshire Hathaway. He announced the news today in a letter to investors. Buffett will remain on the board and become chairman emeritus. He'll be succeeded as chairman by his son Howard. WSJ Deputy Markets Editor Justin Baer joins me now with more. Justin, Buffett had already stepped down as CEO at the end of last year. Why is he stepping down as chairman of the board and why now?
He's ninety six years old, probably the biggest reason for that. People close to him described his health as being pretty stable and and good given his advanced age. He did have a a bad fall a few months ago, which he mentioned. So there are factors there to consider. And something he said since last year is that he had really started to feel his age for the first time in his life and was slowing down. That was May of twenty twenty five. Flash forward more than a year later, he's at a different place even than probably he was then.
Yeah, he wrote in his letter, Father Time always wins, which is quite a strong statement, I think. You mentioned Howie Buffett, uh his son. What is Howie's background to take over as chairman?
Well, that's the thing. Under normal circumstances, Howie would be a very unusual choice. You know, he didn't spend his life and career inside Berkshire or really any traditional corporate environment. He's run a farm, he's served in office as a sheriff for a while. He has though been on the board at Berkshire for more than thirty years, and he has really been kind of a lifelong student of his father's business life going back. talk on the phone with people. And being curious what his father was up to and what those calls were about. And in time, his father recognized him as probably the best person to step in as chairman whenever that time came.
Greg Abel took over as CEO just at the start of this year. So what will his relationship be like with Howie and how will they divide these leadership responsibilities?
Greg has been there part of Berkshire for a long time. So they know one another, been on the board together for a number of years as well. They have much different roles. You know, Greg is sort of the ultimate operator. He's run businesses. He's done deals, he has done all the things you would expect a CO to have done over the course of his career. Howie is not that, does not have that experience, but knows probably better than almost anyone. His father's vision and what he hoped would endure once Warren Buffett himself was no longer there.
You know, this year has been kind of a tough one for Berkshire. It stock has been trailing the SP. Is this a moment of opportunity for a new leader or a really difficult one to be taking the reins?
It's very clear they're stepping into a very kind of uneasy place for this place that has been known for its stability and its performance over many, many decades. All of that was directly linked to the guy who was running it, right? And then suddenly the guy is not running it. There are all sorts of questions that come up about how sustainable the business model is, what this business should do, should they spend more money on on deals, um, should they offer investors a dividend?
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:00–4:53
2
What is the significance of Warren Buffett’s announcement to step down as Berkshire Hathaway chairman?
4:53–7:04
3
Why is Warren Buffett choosing to leave the chairmanship now, and how does his age and health factor in?
7:04–11:39
4
What experience does Howard Buffett bring to the role of Berkshire chairman and why is his background unusual?
11:39–12:39