During the Berkshire Hathaway Annual Shareholders Meeting on May 3, 2025, Greg Abel addressed investors for the first time as CEO. Assuring shareholders, he declared that the core financial principles fostered under Warren Buffett's leadership will endure indefinitely.
"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," Abel expressed in his message accompanying the annual report released Saturday. Abel, now 63, pledged to maintain stability rather than introduce abrupt changes as he succeeded the 95-year-old Buffett, who transitioned from CEO in early 2026 but continues as chairman. Abel laid out his strategy to uphold the company's financial tenacity and maintain stringent capital regulation.
"We maintain a fortress-like balance sheet, ensuring Berkshire's foundation is never compromised," he stated. "We preserve this financial strength by using debt sparingly and prudently. Our substantial liquidity enables us to meet our obligations even under the most adverse conditions and to respond swiftly when opportunities arise." Abel also emphasized the significance of a decentralized management model and maintaining a "reputation for integrity."
Berkshire's cash reserves were reported as $373.3 billion at the close of 2025. Abel termed this financial reserve as strategic "dry powder," positioning the company to act promptly on opportunities without risking its resilience. He also dispelled notions that the substantial cash reserve reflected any hesitance in investing.
While Abel highlighted a continuous stance against distributing cash dividends, he noted, "Our approach to cash dividends continues to be that 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," adding that the board revisits this policy annually.
Abel underscored a consistent approach across investments, whether acquiring full businesses, purchasing public company shares, or repurchasing Berkshire stock. "We will assess value carefully, act patiently, and hold for the long term — preferably forever," he elaborated.
Berkshire's portfolio remains concentrated in leading American firms such as Apple, American Express, Coca-Cola, and Moody's, which Abel expects to grow significantly over decades, though Bank of America was notably absent from his list. He assured that significant adjustments would only occur if long-term economic prospects necessitate changes.
In clarifying questions about the equity portfolio management, Abel affirmed his direct oversight, with Ted Weschler continuing to manage about 6% of the portfolio following investment manager Todd Combs’s departure to JPMorgan.
"At Berkshire, equity investments are fundamental to our capital allocation activities; responsibility ultimately resides with me as CEO," Abel conveyed.
With a reputation as a hands-on operator and support from accomplished subsidiary CEOs, the Canadian-born Abel, who joined Berkshire in 2000 via the MidAmerican Energy acquisition, reflects on his extensive tenure and track record within the company.