Mr Buffett, nicknamed the Oracle of Omaha, will take over an honorary role as chairman emeritus of the firm.
Warren Buffett is stepping down as chairman of Berkshire Hathaway after more than 60 years at the US investment giant.
The 96-year-old became a household name for millions of investors globally after making tens of billions of dollars while running the firm.
Mr Buffett, nicknamed the Oracle of Omaha, will take over an honorary role as chairman emeritus of the firm.
His son Howard will replace him as Berkshire Hathaway chairman, the company said.
“I have served Berkshire since 1965,” Mr Buffett said in a letter to shareholders.
“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.”
Last year, Mr Buffett stepped down as chief executive of the company and was succeeded by Greg Abel.
He added: “Greg runs the company; Howard will guard its culture and values – both worth more than anything on our balance sheet.
“Think of Howard as a policy the shareholders own and hope never to claim against.”
Mr Buffett bought Berkshire Hathaway in 1965 before transforming the textile firm into a multinational conglomerate with a raft of successful investments.
The company currently owns significant stakes in firms including Apple, American Express and Coca-Cola.
Buffett’s fortune has been amassed through Berkshire Hathaway stock and was worth more than 140 billion US dollars (£105 billion) in July.
