Warren Buffett, one of the richest people in the world who made his fortune by making the right stock bets at the right time, has stepped down as the chairman of investment firm Berkshire Hathaway after over 56 years.
However, he will not hang up his boots just yet. He wrote an emotive letter to the company’s stakeholders, assuring them the firm is in the right hands. “Think of Howard as a policy the shareholders own and hope never to claim against. He draws his net worth from Berkshire Hathaway stock. The company had been a New England textile firm. It later became an investing conglomerate.
The investment icon is 96 years old. He will assume the role of chairman emeritus immediately and make way for his son, Howard Buffett, who has been on the giant’s board since 1993. During his time as CEO of Berkshire Hathaway, the company nearly doubled the returns of the S&P 500, with a 19.9% compounded annual growth rate compared with the index’s 10.4% gain.
Another role the “Oracle of Omaha” will not relinquish is that of a director. “Greg runs the company; Howard will guard its culture and values – both worth more than anything on our balance sheet,” he said.
Apart from GEICO, the company also has a stake in Duracell, Coca-Cola, and Bank of America.
“Warren’s impact on Berkshire and its owners is without parallel in the history of American business,” Abel said in a prepared statement. “The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian,” he added.
