Class A shares of Berkshire Hathaway fell by 1.4% on Greg Abel's inaugural day as CEO, marking a significant leadership transition following Warren Buffett's formal handover of the role. This event marks the end of one of the most illustrious leadership tenures in corporate history.
On Friday, Berkshire Hathaway's stock declined as investors absorbed the reality of Buffett's conclusion of a six-decade-long tenure as CEO and the commencement of a new chapter under Greg Abel. The conglomerate, based in Omaha, wrapped up 2025 with a 10.9% gain, falling short of the S&P 500's 16.4% increase but achieving its tenth consecutive year of positive returns. Buffett, aged 95, continues as chairman and has worked to assure shareholders of Berkshire's future strength.
"It has a better chance, I think, of being here 100 years from now than any company I can think of," Buffett remarked in a special interview with CNBC.
Upon taking over, Abel finds Berkshire with a record cash reserve of $381.6 billion as of the end of September, after a lengthy period of net equity selling. Buffett has noted that Abel will assume final responsibility over capital allocation decisions.
"Greg will be the decider," Buffett stated. "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."
Berkshire's shares have underperformed the broader market since Buffett announced his retirement in May, with investors considering whether Abel can manage the conglomerate's extensive operational businesses and equity portfolio effectively, while maintaining a premium valuation.
Buffett departs with an unparalleled track record. After assuming control of Berkshire in the mid-1960s, he transformed a struggling textile company into a powerful compounding entity. From 1964 through 2024, Berkshire realized a compounded annual gain of 19.9%, nearly double the S&P 500's 10.4%, culminating in an overall return of more than 5.5 million percent.