Can Greg Abel Sustain Berkshire's Legacy After Buffett Steps Down?
The next year is expected to be a transitional year for Berkshire Hathaway BRK.B as Warren Buffett steps down from the position of CEO and Greg Abel assumes the role. Buffett’s departure will mark the end of an era for the conglomerate, though he will remain on the board.
Greg Abel has been prepared for this role for many years. He has been overseeing Berkshire’s non-insurance operations and serving as CEO of Berkshire Hathaway Energy and vice chairman since January 2018.
Berkshire’s investment thesis rests on a diversified portfolio generating resilient cash flows, a strong insurance float from GEICO and Berkshire Hathaway Reinsurance that fuels long-term compounding, and a strong balance sheet providing downside protection and opportunistic investment flexibility.
Under the leadership of Warren Buffett, the company has adhered to a disciplined, value-oriented investment philosophy focused on acquiring undervalued assets with durable long-term potential. Also, with Warren Buffett at its helm, Berkshire has been creating tremendous value for shareholders over nearly six decades with his unique skills.
The remarkable success of Berkshire Hathaway is attributable to Warren Buffett and Charles Munger. Though Buffett has duly put in place a succession plan and chosen a successor, it remains to be seen how things work out when Greg Abel succeeds Warren Buffett as CEO of Berkshire, effective Jan. 1, 2026. All eyes will be on the new management of this conglomerate, whether it will be able to replicate or, at best, sustain Buffett’s success story.
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Shares of BRK.B have gained 11.3% year to date, outperforming the industry.
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BRK.B trades at a price-to-book value ratio of 1.55, above the industry average of 1.52. It carries a Value Score of D.