Berkshire Hathaway shares experienced a decline on Friday as investors came to terms with the conclusion of Warren Buffett’s legendary six-decade leadership and the beginning of a new chapter under Greg Abel. On Abel’s inaugural day as CEO, Class A shares saw a drop of 1.4%. This shift marks the end of one of the most celebrated tenures in corporate governance, as Buffett officially handed over the reins to his long-prepared successor.
Despite the recent dip, Berkshire Hathaway concluded 2025 with an impressive gain of 10.9%, although this figure lagged behind the S&P 500’s 16.4% advance. Nonetheless, it is noteworthy that the conglomerate achieved its 10th consecutive year of positive returns. Buffett, now 95 years old, continues to serve as chairman, aiming to reassure shareholders that the company’s legacy and future remain secure beyond his leadership. In a recent interview, he expressed optimism about Berkshire’s longevity, stating, “It has a better chance, I think, of being here 100 years from now than any company I can think of.”
Abel ascends to the CEO position when Berkshire holds a record cash reserve of $381.6 billion as of the end of September, following an extended period marked by net equity sales. Buffett has indicated that Abel will assume final authority over capital allocation decisions, emphasizing his trust in Abel’s capabilities. “Greg will be the decider,” Buffett stated, comparing Abel’s potential effectiveness to that of top investment advisors and CEOs across the country.
Since Buffett announced his impending retirement in May, shares have trailed the broader market, raising concerns among investors regarding Abel’s ability to manage the vast array of Berkshire’s operating businesses and intricate equity portfolio. Many are watching closely to see if he can maintain the conglomerate’s premium valuation.
Buffett leaves behind an unparalleled legacy, having transformed a struggling textile maker into an investment behemoth. Under his stewardship from the mid-1960s to 2024, Berkshire Hathaway achieved a compounded annual gain of 19.9%, nearly double that of the S&P 500’s 10.4%. This remarkable performance has culminated in an astonishing overall return exceeding 5.5 million percent. As shareholders familiarize themselves with this leadership transition, all eyes are on Abel to see if he can uphold the high standards set by his predecessor.
