Greg Abel addressed shareholders during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025. As the new CEO, Abel penned his first annual letter to investors, reaffirming the longstanding tradition of fiscal conservatism championed by his predecessor, Warren Buffett.
Abel expressed his gratitude for the Board’s confidence in him and acknowledged the challenge of succeeding Buffett, stating, "I am honored by our Board's decision to appoint me CEO of Berkshire and humbled to succeed Warren as I write my first annual letter to you. Warren is obviously a very hard act to follow."
Signaling stability, Abel emphasized the continuity of values that have become synonymous with Berkshire, focusing on upholding the company's financial integrity and discipline. "We maintain a fortress-like balance sheet, ensuring Berkshire's foundation is never compromised," he wrote, underscoring the importance of strategic liquidity to guard against adverse conditions and enable timely opportunities.
He highlighted the virtues of a decentralized management model and a commitment to integrity, assuring shareholders that decisions regarding acquisitions, stock purchases, or repurchases adhere to a disciplined strategy aimed at long-term gains. While maintaining their substantial cash reserves of $373.3 billion, Abel dispelled any misinterpretations of this as an aversion to investment, stating it provides the capacity for strategic action without compromising resilience.
Furthermore, Abel reiterated Berkshire's policy against paying dividends, explaining, "Berkshire will not pay dividends so long as more than one dollar of market value for shareholders is reasonably likely to be created by each dollar of retained earnings."
On the topic of investment, Abel confirmed his direct oversight of the equity portfolio while Ted Weschler will handle a portion previously managed by now-departed Todd Combs. Abel committed to a concentrated portfolio approach with limited trading activity, ensuring significant changes only if long-term economic prospects necessitate.
Abel's deep-rooted association with Berkshire traces back to 2000, when the conglomerate acquired MidAmerican Energy. Demonstrating his operational acumen, Abel's rose through the ranks to CEO of MidAmerican by 2008. His experience and strategic insight promise to guide Berkshire Hathaway into a future firmly rooted in its historically successful investment philosophy.