Berkshire shares fall as Greg Abel becomes CEO and Buffett steps aside

Berkshire Hathaway shares slipped Friday as investors digested the formal end of Warren Buffett's six-decade tenure and the start of a new era under successor Greg Abel. Class A shares fell 1.7% in afternoon trading on Abel's first day as CEO, following Buffett's official handoff of the role.

The Omaha-based conglomerate ended 2025 with a gain of 10.9%, trailing the S&P 500's 16.4% advance but marking its 10th consecutive year of positive returns. Buffett, 95, remains chairman and sought to reassure shareholders about Berkshire's future. "It has a better chance, I think, of being here 100 years from now than any company I can think of," he said in a special interview with CNBC.

Abel takes over with Berkshire holding a record $381.6 billion in cash as of the end of September, after an extended period of net equity selling. Buffett has said Abel will have final authority over capital allocation decisions: "Greg will be the decider." He added, "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." Shares had lagged the broader market after Buffett announced his retirement in May, as some investors weighed whether Abel could manage the conglomerate's vast operating businesses and equity portfolio while still justifying a premium valuation.

Buffett departs with an unmatched record.

Key Topics

Business, Berkshire Hathaway, Warren Buffett, Greg Abel, Stocks, Finance, Leadership