Berkshire Hathaway's Class A shares experienced a 1.4% decline on Greg Abel's inaugural day as CEO, marking a significant transition from Warren Buffett's historic leadership role, which officially concluded with his handoff. This change has prompted investors to consider the implications for the company's future.
The share slip occurred Friday as stakeholders processed the end of Buffett's notable six-decade tenure as chief executive and the commencement of a new era under Abel. Despite this shift, the Omaha-based conglomerate completed 2025 with a 10.9% gain, trailing behind the S&P 500's 16.4% rise, yet sustaining a decade-long streak of positive returns. Buffett, now 95, continues as chairman and assures shareholders that Berkshire's future is secure beyond his leadership.
“It has a better chance, I think, of being here 100 years from now than any company I can think of,” Buffett stated in an exclusive interview with CNBC, emphasizing his confidence in the company's longevity.
Upon taking over, Abel inherits a record cash reserve of $381.6 billion as of September's end, following a prolonged phase of net equity sales. Buffett has affirmed that Abel will have the ultimate authority over decisions regarding capital allocation. “Greg will be the decider,” Buffett remarked, expressing high confidence in Abel's capabilities. “I can’t imagine how much more he can get accomplished in a week than I can in a month .... I’d rather have Greg handling my money than any of the top investment advisors or any of the top CEOs in the United States.”
Since Buffett's retirement announcement in May, Berkshire shares have underperformed the broader market as investors evaluate whether Abel can manage the conglomerate's expansive operations and investment portfolio effectively to maintain its premium valuation.
Buffett departs boasting an unparalleled record. After assuming control in the mid-1960s, he transformed Berkshire from a struggling textile company into a financial colossus. From 1964 through 2024, Berkshire achieved a compounded annual gain of 19.9%, nearly doubling the S&P 500's 10.4%, culminating in a staggering overall return of over 5.5 million percent.