Shares dip as Buffett formally steps aside
Berkshire Hathaway shares fell on Friday as investors absorbed the formal end of Warren Buffett’s six decade tenure as chief executive and the beginning of a new chapter led by successor Greg Abel.
Class A shares declined 1.4% on Abel’s first day as CEO, following Buffett’s official handover of the role and the conclusion of one of the longest and most influential leadership periods in corporate history.
Long term performance remains resilient
The Omaha based conglomerate closed 2025 with a gain of 10.9%, underperforming the S&P 500’s 16.4% rise but extending its streak to a tenth consecutive year of positive returns. Buffett, now 95, remains chairman and has emphasized that Berkshire’s future is not dependent on his continued leadership.
He has sought to reassure shareholders that the company is positioned to endure for generations beyond his tenure.
Abel takes control with record cash reserves
Greg Abel assumes leadership as Berkshire holds a record $381.6 billion in cash, reported as of the end of September, following an extended period of net equity sales. Buffett has made clear that Abel will have full authority over capital allocation decisions going forward.
Buffett has publicly expressed confidence in Abel’s ability to deploy capital effectively and oversee the company’s diverse portfolio of operating businesses and investments.
Market reaction reflects investor uncertainty
Berkshire shares have lagged the broader market since Buffett announced his retirement in May, reflecting investor caution over whether Abel can replicate Buffett’s unique stewardship while sustaining the conglomerate’s premium valuation.
Despite these concerns, Buffett departs with a record that remains unmatched in modern finance.
A historic legacy in corporate leadership
After taking control of Berkshire in the mid 1960s, Buffett transformed a struggling textile company into one of the world’s most successful compounding enterprises. Between 1964 and 2024, Berkshire achieved a compounded annual return of 19.9%, nearly double the S&P 500’s 10.4%.
This performance translated into a cumulative gain of more than 5.5 million percent, cementing Buffett’s legacy as one of the most successful capital allocators in history.
