Why Warren Buffett’s son, Howie Buffett, won’t be CEO of Berkshire Hathway | Company Business News

In a surprise on May 3, Warren Buffett, 94, announced his retirement, and renamed Greg Abel as his likely succesor. “I think the time has arrived where Greg should become the Chief Executive Officer of the company at year end,” he said.

Speaking during the company’s annual shareholder meeting on Saturday, the billionaire investor said that only the board and his two children (Howard and Susie Buffett) knew about the announcement — even designated successor Greg Abel, 62, was unaware the announcement was coming.

Why Won’t Warren Buffett’s son Howard be CEO of Berkshire Hathway?

Notably, in what was among the greatest wealth transfers in modern history, Warren Buffett‘s three children — Susie (71), Howard (70), and Peter (66) — were given $140 billion of his Berkshire stocks.

The stakes all three hold are assigned to philanthropic causes, which means Warren Buffett’s children will not inherit most of their father’s fortune. Susie Buffett has been on the board of directors since 2021, Howie has held a position on the board for over 30 years.

The handover plan has been in the works for “decades” and second child Howie is set to take over as non-executive chairman of Berkshire Hathaway from Warren Buffett, according a Wall Street Journal (WSJ) report in January. He has been tasked with “maintaining the culture”, it added.

Warren Buffett on son Howie’s Role in Berkshire

Warren Buffet was upfront about his choice of heir, telling the WSJ: “He is getting it because he’s my son. I’m very, very, very lucky in the fact that I trust all three of my children.”

On taking over, Howard Buffett told the paper he is prepared, adding: “I feel I’m prepared for it because he (Warren Buffett) prepared me. That’s a lot of years of influence and a lot of years of teaching.” He added that he has watched and learnt from Warren Buffett and “turned to his father for advice” over the years.

What is Howie Buffett’s aim as Non-Executive Chairman?

According to Howard Buffett, the culture at Berkshire is to “keep things simple”. “… Do what you need to do … treat people fairly, respect your managers, respect your shareholders. Tell them the bad news upfront, be honest. It’s not rocket science,” he explained.

His sister Susie Buffett described Howie as someone who when interested in someting “gets interested 110 per cent”, while brother Peter Buffett noted that the middle sone “feels a responsibility to preserve our father’s legacy. He carries the weight of meaning around Berkshire and what my dad has built.”

About Berkshire Hathaway

Warren Buffett founded Berkshire in 1965 and with longtime friend and business partner Charlie Munger in Omaha, Nebraska. The two grew up together. Charlie Munger passed away in November 2023.

Now estimated to be over $1 trillion, Berkshire Hathaway has around 200 businesses including Geico car insurance, the BNSF railroad, industrial and chemical companies, utilities, Dairy Queen ice cream, Fruit of the Loom underwear and See’s Candies.