Berkshire Hathaway shares dip as Warren Buffett exits and Greg Abel era begins

Berkshire Hathaway Shares Ease as Leadership Transition Signals New Chapter for Investors

Imagine your favorite sports team changing coaches after decades of winning—everyone wonders if the new coach can keep up the streak. That’s what’s happening right now at Berkshire Hathaway, as legendary investor Warren Buffett steps down and Greg Abel takes the lead.

What Just Happened at Berkshire Hathaway?

Berkshire Hathaway, the giant company led by Warren Buffett for over 60 years, has a new CEO: Greg Abel. On Abel’s first day, Berkshire’s most expensive shares fell by 1.4%. This small dip shows some investors are nervous about the big change at the top.

Buffett, who is now 95, isn’t leaving completely—he’s staying as chairman. He wants everyone to know that he believes Berkshire Hathaway will still be strong for another 100 years, even without him calling all the shots.

Why Does This Matter for Investors?

Changing leaders at a company as famous as Berkshire Hathaway is a big deal. For investors, it’s like watching a new captain steer a massive ship. Will the journey stay smooth, or will there be rough waters ahead?

  • Buffett’s track record: Since 1964, under Buffett’s rule, Berkshire Hathaway grew about 19.9% per year. That’s nearly double what the S&P 500 returned, and it means a $1 investment back then would have turned into more than $55,000 today (source).
  • Big cash pile: Berkshire now has a record $381.6 billion in cash, giving Abel plenty of options for new investments or deals.
  • Market reaction: Some investors are worried Abel may not match Buffett’s magic touch, especially when picking stocks or managing the company’s many businesses.

Bulls: Reasons to Be Optimistic

  • Strong foundation: Buffett has built Berkshire into a group of solid businesses, from insurance to railroads, that keep making money.
  • Careful planning: Buffett has been preparing Abel for years, making sure he’s ready to take over.
  • Record of success: Even as the S&P 500 gained 16.4% in 2025, Berkshire still delivered a 10.9% gain—its 10th year in a row of positive returns.
  • Plenty of cash: With so much money saved up, Abel can act fast if good deals appear or if markets get rocky.
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Bears: Reasons for Caution

  • Big shoes to fill: Buffett’s investing style and reputation are legendary. Investors worry if anyone can keep up that kind of performance.
  • Market lag: Recently, Berkshire’s stock hasn’t grown as fast as the overall market, raising questions about future growth.
  • New leadership risks: Changes at the top can sometimes lead to mistakes or slow decision-making, especially in a company as complex as Berkshire.
  • Valuation concerns: Berkshire’s shares often traded at a premium because of Buffett’s reputation. That premium might shrink if investors lose confidence.

Historical Perspective & Data

It’s rare for a company to keep growing for decades after a legendary leader steps down. For example, when Steve Jobs left Apple, there were doubts—but the company still thrived under new leadership (source). Investors will watch closely to see if Berkshire can do the same.

Investor Takeaway

  • Don’t panic: Leadership changes are normal in big companies. Watch how Abel manages the first year before making big moves.
  • Follow the cash: Berkshire’s huge cash pile means they’re ready for new investments—track what Abel does with it.
  • Diversify: Don’t put all your eggs in one basket. Even great companies go through changes and challenges.
  • Watch for updates: Pay attention to Berkshire’s quarterly reports and shareholder meetings for clues on Abel’s strategy.
  • Think long-term: Berkshire has survived and thrived through many market ups and downs. History shows patience can pay off for investors.

For the full original report, see CNBC

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