Good morning. At age 96, Warren Buffett has officially closed the book on his more than six-decade tenure as chairman of Berkshire Hathaway.

Buffett stepped down as chairman on Sept. 18, effective immediately, and was succeeded by his son, Howard G. Buffett, a Berkshire director for 33 years. The move caps a leadership transition that began when Greg Abel took over as CEO on Jan. 1. While the CEO succession unfolded over a longer timeline, Buffett’s decision to relinquish the chairmanship came as a surprise to some investors, even though Berkshire described it as part of a “long-standing succession plan.” Buffett will remain on Berkshire’s board as chairman emeritus.

In his shareholder letter, Buffett wrote that the timing was right to complete the transition, in part because Abel had exceeded his expectations, which were “sky-high from the start.”

Buffett drew a sharp distinction between operating authority and cultural stewardship: “Greg runs the company; Howard will guard its culture and values,” he wrote, adding that both are “worth more than anything on our balance sheet.” It’s a governance model that separates the CEO’s operating mandate from the chairman’s role as culture custodian.

Abel called Buffett’s impact on Berkshire “without parallel in the history of American business,” adding that the culture Buffett built “will remain at the heart of Berkshire, and Howard will be their guardian.” Susan Decker will remain continue as lead independent director.

Abel’s imprint is already visible in Berkshire’s capital allocation. The company spent $39.4 billion on equity purchases in the first half of 2026, more than five times the $7.1 billion deployed in the same period a year earlier.

Alphabet is now Berkshire’s third-biggest holding, worth $37.8 billion at midyear, after Abel added 48.1 million shares, part of a $10 billion commitment to support Alphabet’s AI investments, a new area for the conglomerate. That sits alongside Abel’s $6.8 billion purchase of homebuilder Taylor Morrison, a typical value bet in the Buffett mold, and $4.5 billion in share buybacks that resumed after more than a year of inactivity.

The real test of Berkshire’s succession will not be whether Abel can imitate Buffett. It will be whether he can preserve Berkshire’s discipline while making capital-allocation decisions that Buffett himself might not have made.

Sheryl Estrada
Sheryl.Estrada@fortune.com

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