Buffett steps down as Berkshire chief, son Howard steps in

Warren Buffett surprised many investors by announcing his decision to step down as chairman and CEO of Berkshire Hathaway on Friday. At the age of 96, Buffett has built the conglomerate over more than six decades and has become one of the most respected investors in the world. He will now hold the honorary title of chairman emeritus, while his oldest son, Howard Buffett, 71, takes over as non-executive chairman.

Buffett's departure marks the culmination of a years-long leadership transition, with his son Howard, who has been a director since 1993, stepping into the role of non-executive chairman. This change came nearly nine months after Buffett stepped down as chief executive officer, handing over the reins to long-time aide Greg Abel.

Despite his age, Buffett remains actively involved with Berkshire Hathaway, serving as a director and offering his valuable insights and perspective. Known as the Oracle of Omaha, Buffett transformed the company from a failing New England textile business into a $1.1 trillion conglomerate, promoting a value-oriented investment philosophy that has influenced countless investors and executives.

Berkshire Hathaway's diverse portfolio includes well-known brands such as GEICO car insurance, the BNSF railroad, energy, industrial and retail businesses, Dairy Queen ice cream, Ginsu knives, and even brands like the World Book Encyclopedia. The conglomerate also owns hundreds of billions of dollars worth of stocks, including Apple, American Express, Google parent Alphabet, and Coca-Cola.

Berkshire's size and influence make it an outlier among the trillion-dollar companies dominated by technology giants. Berkshire's shares rose 0.4 percent in after-hours trading following Buffett's announcement. Sources close to Buffett noted that his reduced role was not unexpected, as he had previously hinted at the timing of his exit from the CEO position.