Berkshire Hathaway’s new CEO was the previous leader of the company’s operating businesses.
This new management team has the unique problem of having too much cash sitting on its balance sheet.
Berkshire stock looks cheap when you add up all its assets and the earnings power of its subsidiaries.
A leadership change has finally occurred at Berkshire Hathaway (NYSE: BRK.B). At the end of 2025, Warren Buffett stepped down as the chief executive officer of the trillion-dollar conglomerate after a 60-year run transforming the tiny business into one of the largest holding companies in the world. Berkshire’s new CEO is Greg Abel, who previously led the company’s operating businesses.
Berkshire Hathaway stock is now down about 10% from highs set around the time of Buffett’s retirement announcement last year. Does that make the stock a buy?
Who is Greg Abel? He is a Canadian who joined Berkshire Hathaway after the acquisition of MidAmerican Energy, which was renamed Berkshire Hathaway Energy in 2014. Since 2008, he has led the energy division, with expanded duties in 2018 to all of Berkshire Hathaway’s non-insurance businesses.
These include Berkshire Hathaway Energy, the BNSF railroad, Lubrizol specialty chemicals, and retailers such as See’s Candies. Combined, these businesses generate about $25 billion in operating earnings a year, making them one of, if not the largest, drivers of value creation for Berkshire Hathaway in the 21st century as it transitioned from an investment vehicle to a wider conglomerate.
Abel has performed admirably running these business units, which is likely why he was given the executive role after Buffett. Now, he is leading the entire Berkshire Hathaway organization and has the final say on capital allocation.
Buffett made his mark as an investor. Berkshire Hathaway’s large investment portfolio reflects that to this day, with a portfolio totaling more than $300 billion at the end of last quarter. Stock holdings include Apple, American Express, and Occidental Petroleum.
Where problems may arise is managing this investment portfolio, which Buffett was mainly in charge of for the last decade. He had two vice presidents running investments for Berkshire, but one of them, Todd Combs, just left for JPMorgan. That leaves Ted Weschler behind to manage hundreds of billions in assets, while the other leaders at the company — Ajit Jain and Greg Abel — have backgrounds in different fields (insurance and energy, respectively).