Berkshire Hathaway's New Era Under Greg Abel: A Transition of Leadership
The business world is abuzz as Berkshire Hathaway embarks on a new chapter following the historic tenure of Warren Buffett, who officially passed the CEO baton to Greg Abel. On Abel’s first day in the role, Class A shares dipped by 1.4%, reflecting investor sentiment as they adjusted to the end of an era that spanned over six decades. Buffett, now 95 years old, remains the chairman and has been vocal in assuring stakeholders that the conglomerate’s future remains bright beyond his leadership.
As 2025 closed, Berkshire Hathaway reported a gain of 10.9%, though it lagged behind the S&P 500’s impressive 16.4% rise. Nevertheless, this marked the company’s tenth consecutive year of positive returns, a testament to its resilience and strategic management. Buffett expressed confidence in the company’s longevity, stating, “It has a better chance, I think, of being here 100 years from now than any company I can think of,” during a special interview with CNBC.
One of the most significant aspects of Abel’s leadership transition is the financial position he inherits. As of the end of September 2025, Berkshire Hathaway boasted a record cash reserve of $381.6 billion, a result of a prolonged period of net equity selling. Buffett has made it clear that Abel will have the final say on capital allocation decisions, emphasizing his trust in Abel’s capabilities. “Greg will be the decider,” Buffett remarked, highlighting his belief in Abel’s potential to outperform even the top investment advisors and CEOs in the United States.
Despite the promising outlook, Berkshire shares have shown signs of weakness since Buffett announced his retirement in May 2025. Investors are keenly observing whether Abel can manage the vast array of Berkshire’s operating businesses and equity portfolio with the same finesse that has characterized Buffett’s leadership. The challenge lies in maintaining the conglomerate’s premium valuation while navigating the complexities of its diverse investments.
Warren Buffett’s departure marks the end of an unmatched era in corporate history. Since taking control of Berkshire in the mid-1960s, he transformed a struggling textile manufacturer into a powerhouse of compounding growth. From 1964 to 2024, Berkshire Hathaway delivered an astonishing compounded annual gain of 19.9%, nearly double that of the S&P 500’s 10.4%, resulting in an overall return exceeding 5.5 million percent.
As Greg Abel steps into his new role, all eyes will be on how he navigates this legacy and steers Berkshire Hathaway into the future. The transition from Buffett to Abel is not just a change in leadership but a pivotal moment for one of the most revered companies in the world. Investors and analysts alike will be watching closely to see if Abel can uphold the principles that made Berkshire Hathaway a beacon of success while carving out his own path in the evolving landscape of business.