Berkshire Hathaway (BRK.B) has amended its bylaws to officially separate the roles of chairman of the board of directors and chief executive officer (CEO).
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The move comes as Warren Buffett, age 95, prepares to step down as CEO at year’s end, though he will remain chair of the company’s board of directors. Buffett, who gained control of Berkshire Hathaway in 1965, has long held the dual roles of board chair and CEO.
The holding company said that the bylaw change was made as Berkshire Hathaway prepares for the leadership transition at year’s end. Greg Abel, Buffett’s handpicked successor, will become president and CEO on Jan. 1, 2026.
End of an Era
Warren Buffett will continue as chairman of Berkshire Hathaway’s board of directors indefinitely and is reported to still be involved in the company’s management. The board voted unanimously on May 4 to appoint Abel to the CEO position.
Greg Abel previously ran Berkshire Hathaway’s energy unit and has been touted as Buffett’s successor for several years. Buffett announced that he will step down as CEO at the end of 2025 at Berkshire Hathaway’s annual meeting earlier this year.
Many analysts and investors view Buffett as irreplaceable. Since 1965, when Buffett took control, Berkshire Hathaway’s stock has delivered an annual return of 20% through 2024, double the benchmark S&P 500’s 10% return during the same time period.
Is BRK.B Stock a Buy?
Only a few analysts currently offer a rating and price target on Berkshire Hathaway’s more affordable class B stock. So instead, we’ll look at the stock’s three-month performance. As one can see in the chart below, shares of BRK.B have risen 2.68% in the last 12 weeks.
