Warren Buffett stepped down as CEO of Berkshire Hathaway (BRK-B | BRK.B Price Prediction) on December 31, 2025, after six decades leading the conglomerate he transformed from a struggling textile mill into a $1 trillion empire.
Berkshire Hathaway ended the first quarter with a record cash pile of roughly $397 billion after continuing to dump stocks.
Berkshire Hathaway faces skepticism about Greg Abel's investment skills compared to Warren Buffett's historic track record. Buffett acknowledges Berkshire's large size will make it difficult to outperform the S&P 500 going forward due to the large scale needed to move the needle. Greg Abel's investment skills derive in part from mentorship by Buffett but also from the ability to understand businesses that are the main target in large acquisitions.
I am bullish on Berkshire Hathaway (BRK.B) following a strong Q1 print and Greg Abel's confident debut as CEO. BRK.B delivered 18% YoY operating earnings growth, resumed buybacks, and maintains a $397.4B cash position for strategic flexibility. Abel's operational focus, openness to technology, and proactive capital allocation mark a notable shift from Buffett's approach.
On May 2, Berkshire Hathaway NYSE: BRK.B shareholders attended the first shareholder meeting without Warren Buffett presiding. Buffett announced his retirement in 2025 and appointed Greg Abel as the company's new chief executive officer.
Berkshire Hathaway Inc (NYSE:BRK.A) over the weekend reported higher operating earnings and a record cash position in the first quarter of 2026, marking the company's first full-quarter results under new CEO Greg Abel, who succeeded longtime leader Warren Buffett. The conglomerate said operating earnings rose to $11.35 billion for the quarter, up nearly 18% from $9.64 billion a year earlier, driven by gains across several of its core businesses, including insurance underwriting.
Berkshire Hathaway enters the Greg Abel era with cautious leadership, maintaining its long-standing capital allocation philosophy. Q1 results showed 18% operating earnings growth and strong insurance underwriting, but limited stock buybacks despite a $380B cash position. BRK.B trades at a 23x forward earnings multiple and 1.42x price/book, yet management remains disciplined, favoring cash accumulation over aggressive repurchases.
Many in the investment community were reassured by Abel's firm grasp over Berkshire's sprawling enterprise.
Berkshire Hathaway delivered a reassuring first annual meeting under Greg Abel, emphasizing operational excellence and continuity in culture and capital discipline. Geico and BNSF are improving but have more to do. Targeted application of AI is helping them become more efficient. Berkshire is now trading below intrinsic value based on my sum-of-the-parts model, P/B ratio of 1.4, and resumption of buybacks.
The new chief was mostly all business in his debut as MC at the conglomerate's annual meeting in Nebraska.
Berkshire Hathaway has added to a giant pile of cash, and sending a message for investors to be patient.
Berkshire Hathaway faces strategic stagnation, with a $400B cash hoard and limited capital appreciation prospects under current constrained leadership. BRK.B's commitment to retaining all operating businesses and eschewing major capital returns signals tactical ossification and lack of shareholder focus. The stock trades at a 15.26 P/E, a 30% premium to peers, yet has underperformed with a flat-to-down trajectory and minimal buybacks.