The company on Friday named his son, Howard Buffett, a director since 1993, as chairman.
Warren Buffett is credited with transforming Berkshire from a failing textile company into a $USUS1.1 trillion ($USA1.5 trillion) conglomerate while building an investment philosophy that influenced generations of investors and executives, making him one of the most consequential figures in modern corporate America.
"As chairman emeritus, Mr Buffett will remain a member of the Board of directors and will continue to offer his valued judgment and perspective," Berkshire said in a statement.
Shares of the company were broadly unchanged in pre-market trading.
Buffett's reputation has also been reflected in Berkshire's valuation, with investors for years ascribing a "Buffett premium" to its shares.
The conglomerate's price-to-book value has fallen since Buffett announced he would step down as CEO, slipping from about 1.62 to 1.53, according to data compiled by LSEG.
Berkshire remains the only financial firm in the trillion-dollar market-value club dominated by technology giants.
"Father Time always wins. He has, however, been generous with me," Buffett, 96, wrote in a letter to shareholders on Friday.
"I have served Berkshire since 1965.
"Sixty-plus years in, I still have the best job in the world. That is not something many people my age can say and I have never felt better about what comes next."
Buffett's influence has extended far beyond Berkshire, shaping generations of corporate leaders and investors with his emphasis on long-term thinking, disciplined capital allocation and straightforward management.
"The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian," Abel said in a statement.
Nicknamed the "Oracle of Omaha", he has been viewed by CEOs as a sounding board on everything from acquisitions and succession to navigating periods of market turmoil, while his annual shareholder meetings became a gathering point for investors seeking insight into the broader business landscape.
Buffett first announced plans to step away from the conglomerate in May 2025, surprising shareholders and analysts despite his age.
After decades at the helm, he had become synonymous with the company, making his succession one of the most closely watched in corporate America.
"The timing is right to complete the transition," he wrote in the letter on Friday.
In August, Berkshire said it began reducing its enormous stockpile of cash in the second quarter, investing billions of dollars in stocks such as Alphabet and repurchasing billions of its own, as it reported higher-than-expected profit.
Its quarterly operating profit rose 16 per cent to $US12.98 billion, topping analysts' forecasts, while net income more than doubled to $US25.67 billion, including unrealised gains and losses on stocks that Omaha, Nebraska-based Berkshire still owns.
Howard Buffett is the chairman and CEO of the Howard G Buffett Foundation, a non-profit that focuses on global food security and conflict mitigation.
He has been a director of numerous public and private company boards, including Agro Tech, Archer-Daniels-Midland, ConAgra Foods, Coca-Cola.
"The company is in excellent hands, and I look forward to remaining a shareholder alongside you," Warren Buffett said in his letter.
with AP
