Berkshire Hathaway’s post-Warren Buffett era commenced on Friday, with shares experiencing a slight decline after Buffett passed the CEO role to Greg Abel following six decades at the helm. The conglomerate now faces the challenge of maintaining its impressive track record without its chief architect, who transformed the company from a struggling textile business into an investment giant valued at over $1 trillion. Brian Jacobsen, chief economic strategist at Annex Wealth Management, noted that replicating Buffett’s ‘cult following’ will be a significant hurdle.
Greg Abel assumes leadership at a crucial juncture for Berkshire. In 2025, Berkshire’s shares underperformed the S&P 500 index, and Buffett himself acknowledged the increasing difficulty in finding acquisitions substantial enough to impact the conglomerate significantly. Simultaneously, Berkshire has been reducing its stakes in long-held investments like Apple and Bank of America, while amassing a record cash reserve, a move that has sparked concern among some investors. As of September 30, the company held $381.7 billion in cash and equivalents.
Despite these challenges, Abel, who joined Berkshire in 2000 and has served as vice chairman overseeing its non-insurance operations since 2018, inherits a substantial corporate war chest. Berkshire Hathaway is a diversified holding company engaged in businesses such as insurance (GEICO), freight rail transportation (BNSF), energy, manufacturing, and consumer brands (Dairy Queen, Fruit of the Loom). While leadership transitions can present difficulties, Jacobsen believes Buffett has adequately prepared the company for this transition.
On Friday, Berkshire’s Class B shares fell by 1.4% to $495.48, while Class A shares dipped 1.6% to $743,020. Meanwhile, Wall Street’s main indexes were up on Friday. Michael Ashley Schulman of Running Point Capital Advisors commented that Buffett’s departure as CEO could act as a ‘psychological tripwire’, noting that Berkshire is often seen as a reliable investment choice, particularly during times of market uncertainty. Buffett will remain chairman and support Abel.
