Berkshire Hathaway shares dip as Warren Buffett exits and Greg Abel era begins
Berkshire Hathaway Shares Slip as Warren Buffett Hands Over CEO Role to Greg Abel
Warren Buffett and Greg Abel at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, May 3, 2025.
David A. Grogen | CNBC
Shares of Berkshire Hathaway slipped on Friday as investors processed the formal end of Warren Buffett’s six-decade tenure as chief executive and the beginning of a new era under successor Greg Abel.
Class A shares fell 1.4% on Abel’s first day as CEO, following Buffett’s official handoff of the role and the close of one of the most storied leadership tenures in corporate history.
The Omaha-based conglomerate closed out 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 has expressed confidence in Berkshire’s future beyond his leadership.
In a special interview with CNBC, Buffett stated, “It has a better chance, I think, of being here 100 years from now than any company I can think of.”
Abel assumes the role of CEO as Berkshire holds a record $381.6 billion in cash as of the end of September, following a period of net equity selling. Buffett has entrusted Abel with final authority over capital allocation decisions.
“Greg will be the decider,” Buffett emphasized. “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.”
Berkshire’s shares underperformed the broader market after Buffett announced his retirement in May, as some investors questioned Abel’s ability to oversee the conglomerate’s vast operating businesses and equity portfolio while maintaining a premium valuation.
Buffett leaves behind an unparalleled legacy. Taking control of Berkshire in the mid-1960s, he transformed a struggling textile maker into a compounding powerhouse. From 1964 through 2024, Berkshire achieved a compounded annual gain of 19.9%, nearly double the S&P 500’s 10.4%, resulting in an overall return of over 5.5 million percent.
