Berkshire CEO Greg Abel vows to keep Buffett’s culture of disciplined investing in first annual letter
Berkshire Hathaway’s new CEO Greg Abel recently penned his first annual shareholder letter, reassuring investors that the conglomerate’s culture of financial conservatism and disciplined investing, established under Warren Buffett, will remain steadfast “into perpetuity.”
In his letter, Abel expressed gratitude for the opportunity to lead Berkshire Hathaway and acknowledged the challenge of succeeding the legendary Warren Buffett. He emphasized the importance of upholding Berkshire’s core values, including financial strength, strict capital discipline, decentralized management, and integrity.
Abel highlighted Berkshire’s robust balance sheet, with a cash pile of $373.3 billion at the end of 2025. He described this cash reserve as strategic dry powder, enabling the company to act swiftly on opportunities without compromising its resilience. Despite the substantial cash position, Abel clarified that Berkshire remains committed to its long-standing policy of not paying dividends unless there is a clear benefit to shareholders.
The new CEO outlined Berkshire’s investment strategy, emphasizing the importance of assessing value carefully, acting patiently, and holding investments for the long term. Abel noted that Berkshire’s equity portfolio will continue to focus on a select group of American companies, including Apple, American Express, Coca-Cola, and Moody’s.
One key point addressed in the letter was the oversight of the equity portfolio, with Abel confirming that he would directly manage this aspect of Berkshire’s investments. He also clarified that Ted Weschler would continue to manage a portion of the portfolio, with a focus on maintaining a concentrated approach and limited trading activity.
Abel, with a 25-year tenure at Berkshire, emphasized his long-term commitment to stewarding the company for decades to come. He acknowledged Buffett’s continued involvement as chairman and reassured shareholders that Berkshire would not adopt the quarterly earnings call model typical on Wall Street, focusing instead on quality communication when significant issues arise.
Overall, Abel’s letter reflects a commitment to continuity and a focus on maintaining Berkshire Hathaway’s reputation as a prudent and disciplined investor. As the company transitions to new leadership, investors can expect a steadfast adherence to the principles that have guided Berkshire Hathaway for decades.
