faces the challenge of succeeding the legendary figure later on
Many consider Buffett the world’s top investor, having transformed Berkshire from a struggling New England textile mill—one he began purchasing at $7.60 per share in 1962—into the entity it is today, with shares now priced at over $750,000 each. Buffett’s personal stake in Berkshire stock is valued at approximately $150 billion, even after over the past 20 years.
For decades, Berkshire has consistently outperformed the S&P 500 as Buffett acquired insurance firms such as Geico and National Indemnity, manufacturers like Iscar Metalworking, retail brands including Dairy Queen, major utilities, and even one of the country’s largest railroads, BNSF. In the process, Buffett bought and sold hundreds of and reaped substantial profits from his well-known long-term investments in companies like , and .
In recent years, Berkshire has found it difficult to maintain that pace due to its massive growth and challenges in identifying new, significant acquisitions. Even this fall’s of OxyChem likely isn’t large enough to impact Berkshire’s profits.
Investors will be closely monitoring the changes Abel might introduce to Berkshire’s direction, though major upheavals are unlikely.
Buffett has no plans to leave, and Abel has overseen all of Berkshire’s noninsurance businesses since 2018. Buffett will and intends to continue coming to the office daily to help identify new investments and offer Abel any requested advice.
Some changes are likely
CFRA Research analyst Cathy Seifert noted that it’s natural for Abel to implement some adjustments in how Berkshire is managed. Adopting a more traditional leadership approach for a company with nearly 400,000 employees across dozens of subsidiaries is logical, she added.
However, Berkshire operates under a highly decentralized structure that grants its executives significant decision-making authority. with the company has stated there are no plans to alter this.
The public learned Abel would become the at Berkshire in 2021, when Buffett’s longtime business partner, the, reassured shareholders at an that Abel would uphold the company’s culture.
A key part of Buffett’s pitch to company founders and CEOs considering selling their businesses has always been that Berkshire would largely let them continue running their companies as they had, provided they delivered results.
“I believe the investment community would likely approve of Greg’s management style to the extent that it streamlines operations,” Seifert stated. “And if it enhances performance, that’s hard to criticize.”
Abel plays an active role managing companies
Abel has already demonstrated a more approach than Buffett, yet he still adheres to Berkshire’s model of autonomy for acquired businesses. He poses tough questions to company leaders and holds them accountable for their performance.
Abel did earlier this month following the departure of investment manager and Geico CEO Todd Combs, and the announced retirement of Chief Financial Officer Marc Hamburg. Abel also revealed he is appointing NetJets CEO Adam Johnson to manage all of Berkshire’s consumer, service, and retail businesses. This effectively creates a third division, reducing Abel’s workload. He will continue to oversee manufacturing, utility, and railroad operations.
Eventually, Abel will face greater pressure to initiate dividend payments. From its inception, Berkshire has maintained that reinvesting profits is preferable to making quarterly or annual payouts to shareholders.
However, if Abel cannot find productive uses for the $382 billion in cash Berkshire holds, investors may push for dividends or a traditional stock buyback program to boost share value. Currently, Berkshire only repurchases shares when Buffett deems them undervalued, and he has not done so since early 2024.
Still, Abel will be shielded from such pressure for a time, as Buffett controls nearly 30% of the stock’s voting power. This influence will gradually diminish after his passing, as his children distribute his shares to charity as agreed.
Berkshire has a solid foundation
Many of Berkshire’s subsidiaries tend to align with economic trends, thriving when the country is prosperous. Berkshire’s utilities typically generate steady profits, and its insurance companies—such as Geico and General Reinsurance—collect over $175 billion in premiums annually, which can be invested until claims are paid.
Chris Ballard, managing director at Check Capital, noted that most of Berkshire’s businesses “can nearly operate independently.” He anticipates a bright future for Berkshire under Abel.
One of the most pressing questions now is whether Combs’ departure will lead to further leadership changes. Insurance unit head and Vice Chairman Ajit Jain—whom Buffett has long praised—is now 74, and many subsidiary CEOs have continued working well past retirement age due to their preference for working under Buffett.
“As long-term shareholders, we’re not overly concerned about Todd’s departure and don’t view it as the start of a trend,” said Ballard, whose firm counts Berkshire as its largest holding. “Todd’s situation is unique. It simply underscores that Warren’s departure is approaching and they’re preparing for a new chapter—one we’re still eager to see unfold.”