A new chapter dawns in Omaha as investment titan Warren Buffett stepped down at the end of 2025 after six decades steering Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) to global prominence. Greg Abel, the newly appointed CEO, assumes control following a carefully orchestrated transition.
Berkshire Hathaway has long been a portfolio mainstay under Buffett’s stewardship. But with the winds of change blowing, is the stock still a worthwhile investment?
Historically, Berkshire Hathaway shares have been a sound investment since Buffett took the helm in 1965. However, the stock has faltered this year, declining by approximately 4.2% year-to-date and around 8% over the past year. This dip can be partly attributed to uncertainty surrounding the leadership transition. Filling Buffett’s shoes is a formidable task for anyone.
The company is experiencing change beyond the CEO position, with new management taking charge of insurance and non-insurance operations, and a new chief financial officer is expected to be appointed.
The most recent earnings report, which covered Buffett’s final quarter as CEO, revealed that Berkshire remained a net seller and continued to amass a substantial cash reserve, reaching a staggering $373 billion by year-end.
The market is keenly awaiting the first results under Abel’s leadership, which are expected on May 2 with the release of the Q1 earnings report. Abel will also preside over his inaugural shareholders’ meeting around the same time.
Many aspects of the company are expected to remain consistent. Abel has been with Berkshire Hathaway since 1992, benefiting from decades of mentorship in investing and the company’s culture under Buffett and his longtime partner, Charlie Munger. In his annual shareholder letter, Abel affirmed that Berkshire’s "culture and values remain unchanged and will continue into perpetuity."
Abel emphasised that the company’s culture is its most prized asset and that risk management is the CEO’s paramount responsibility. He stated in a letter to employees:
"We think in decades, act with discipline, and uphold our commitments. Stewardship is embedded in how we operate, reinforcing that our culture is a system for generating long-term performance, not just a set of beliefs."
Having prepared for this role for many years, Abel is unlikely to deviate from the established culture and investment principles. However, some shifts are anticipated. Buffett had been reluctant to deploy the company’s vast cash reserves, primarily due to concerns about high valuations. This may have also been partly to allow Abel and his team to make their own mark.
