Berkshire Hathaway shares dropped on Friday as investors processed the official conclusion of Warren Buffett’s 60-year leadership and the onset of a new chapter under successor Greg Abel.
Class A shares decreased by 1.4% on Abel’s inaugural day as CEO, following Buffett’s official transition of the position and the end of one of the most illustrious executive tenures in business history.
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The Omaha-based conglomerate finished 2025 with a 10.9% increase, falling behind the S&P 500’s 16.4% rise but achieving its 10th straight year of positive returns. Buffett, now 95, continues as chairman and aims to assure shareholders that Berkshire’s future is secure well beyond his time in charge.
“It has a greater likelihood, I believe, of being around 100 years from now than any company I can think of,” Buffett stated in a special interview with CNBC.
Abel assumes control as Berkshire has a record $381.6 billion in cash as of the end of September, following a prolonged period of net equity divestments. Buffett mentioned that Abel will have ultimate authority over capital allocation choices.
“Greg will be the decision-maker,” Buffett stated. “I can’t envision how much more he can achieve in a week than I could in a month …. I’d prefer to have Greg managing my investments over any of the premier investment advisors or CEOs in the United States.”
Berkshire shares lagged behind the broader market following Buffett’s retirement announcement in May, as some investors considered whether Abel could effectively manage the conglomerate’s extensive operations and equity portfolio similarly while justifying a premium valuation.
Buffett exits with an unparalleled legacy. After gaining control of Berkshire in the mid-1960s, he transformed a struggling textile company into a compounding giant. From 1964 to 2024, Berkshire recorded a compounded annual growth of 19.9%, almost double the S&P 500’s 10.4%, resulting in an overall return exceeding 5.5 million percent.
