Berkshire Hathaway (BRK.A.US, BRK.B.US) officially enters the "post-Buffett era", market focuses on Abel's performance after taking over.

On Friday, the stock price of Berkshire Hathaway (BRK.A.US, BRK.B.US) dipped slightly as investors were digesting the news of legendary investor Warren Buffett officially ending his 60-year tenure as CEO and the company entering a new era. On the first day with Warren Buffett's successor Greg Abel as CEO, Berkshire Class A shares fell over 1.4%. With the formal handover of power, it also marked the end of one of the most legendary leadership chapters in American corporate history. In terms of overall performance, Berkshire saw its stock price rise by 10.9% in 2025, lower than the S&P 500 index's 16.4% increase during the same period, but has achieved positive returns for the 10th consecutive year. The 95-year-old Buffett will continue to serve as chairman of the company and has repeatedly emphasized to shareholders that Berkshire's long-term viability does not depend on him personally. Buffett said in an interview, "I think the likelihood that it will still be around 100 years from now is probably greater than any company I can think of." At the time of Abel taking over, Berkshire's cash reserves were at an all-time high. As of the end of September, the company held a record $381.6 billion in cash, having been selling off stock assets for some time. Buffett made it clear that the final decision on capital allocation in the future will be entirely in Abel's hands. "The one who will make the final decision will be Greg," Buffett said, "I find it hard to imagine that what he can accomplish in a week, won't be more than what I can in a month...if I have to choose, I'd rather entrust Greg with the money to manage, than any top investment advisor or CEO in America." However, since Buffett announced his retirement plan in May of this year, Berkshire stock overall has underperformed the market. Some investors are still waiting to see if Abel can manage Berkshire's vast physical business portfolio and stock investment portfolio in the same steady manner while continuing to support its premium valuation. Looking back at Buffett's tenure, his performance is nearly unmatched. Since taking over Berkshire in the mid-1960s, he has transformed a struggling textile mill into the world's most influential conglomerate. From 1964 to 2024, Berkshire's annualized compound return rate was a staggering 19.9%, almost double the S&P 500 index's 10.4% during the same period. In terms of stock price, Berkshire has created tens of thousands of times return for early investors over the past sixty years.