By Niket Nishant and Manya Saini
Jan 2 (Reuters) – Berkshire Hathaway’s post-Buffett era began quietly Friday, as shares slipped slightly after the “Oracle of Omaha” handed Greg Abel the top job following six decades at the helm.
The world’s most famous conglomerate now must protect its record without its chief architect, who remade modern investing and transformed the company from a struggling textile business into an investment giant worth more than $1 trillion.
“It’s hard to imagine that there will be the same cult following,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management.
Known for a long-term strategy and a focus on buying high-quality businesses at reasonable prices, Warren Buffett delivered steady gains that outpaced broader markets and made him a trusted steward of capital.
But Buffett’s longtime lieutenant Greg Abel takes over at a sensitive time for the company. Berkshire shares underperformed the benchmark S&P 500 index in 2025, and Buffett has said that it is difficult to find an acquisition capable of “moving the needle” for the conglomerate.
RECORD CASH, FEWER DEALS
Berkshire has been whittling down its stake in longtime holdings such as Apple and Bank of America, while building a record cash pile that has worried some investors.
Still, Abel, 63, inherits one of corporate America’s biggest war chests. The company held $381.7 billion in cash and equivalents, as of September 30.
While leadership changes can be difficult and Buffett’s name was deeply tied to Berkshire, he has prepared the company for this transition, Jacobsen said.
Abel joined Berkshire in 2000 after it acquired MidAmerican Energy, now known as Berkshire Hathaway Energy.
He has served as vice chairman overseeing Berkshire’s non-insurance businesses since 2018.
The company’s Class B shares, which trade at a more accessible price point, edged down 0.4% to $500.7 in New York on Friday. Class A shares dipped 0.5% to $751,000.
Wall Street’s main indexes, meanwhile, rose on Friday. [.N]
“The Oracle of Omaha’s exit as CEO can be a psychological tripwire,” said Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors.
Berkshire is often viewed as the market’s safe, reliable choice. While it tends to lag when investors are rushing into higher-risk bets, it seems like a wiser hold when market sentiment becomes more cautious, Schulman added.
Berkshire Hathaway owns a sprawling collection of businesses, including insurer GEICO, BNSF Railway, dozens of manufacturing and energy operations, and consumer brands such as Dairy Queen, Fruit of the Loom and See’s Candies.
Buffett will remain chairman and has said he plans to continue coming to Berkshire’s office in Omaha each day, about 2 miles (3.2 km) east of his home, to support Abel.
(Reporting by Niket Nishant and Manya Saini in Bengaluru; Editing by Tasim Zahid)
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