Berkshire Hathaway's Class A shares experienced a 1.4% drop on Greg Abel's inaugural day as CEO, following the official handover of leadership from Warren Buffett—concluding one of the most remarkable executive tenures in corporate history.
On Friday, investors processed the conclusion of Buffett’s six-decade career at the helm and the commencement of a new chapter under Abel. The Omaha-based company's shares dipped as shareholders evaluated the new leadership.
Berkshire concluded 2025 with a growth of 10.9%, which, although trailing the S&P 500's 16.4% rise, marked its 10th consecutive year of positive returns. Despite stepping down as CEO, the 95-year-old Buffett continues as chairman and reassures stakeholders of a robust future for Berkshire well beyond his leadership.
In a special interview with CNBC, Buffett expressed confidence, stating, "It has a better chance, I think, of being here 100 years from now than any company I can think of."
As Abel takes the reins, Berkshire is poised on a record $381.6 billion cash reserve as of September's end, following a period of net equity sales. Buffett has publicly confirmed that Abel will have the ultimate decision-making authority on capital allocation.
"Greg will be the decider," Buffett said. "I can't imagine how much more he can get accomplished in a week than I can in a month .... I'd rather have Greg handling my money than any of the top investment advisors or any of the top CEOs in the United States."
Following the announcement of Buffett's retirement in May, Berkshire's shares have underperformed compared to the broader market, as some investors questioned whether Abel could manage the conglomerate's extensive operations and portfolio with the same adeptness while maintaining its premium valuation.
Buffett leaves behind an unparalleled legacy. After assuming control in the mid-1960s, he transformed Berkshire from a floundering textile manufacturer into a compounding giant. From 1964 to 2024, the company achieved a compounded annual gain of 19.9%, nearly twice the S&P 500's 10.4%, cumulating in a total return exceeding 5.5 million percent.