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Berkshire Hathaway Enters Abel Era With Shares Slipping as Record Cash Looms

Investors are watching how Greg Abel deploys about $380 billion in cash.

Overview

  • Greg Abel became CEO on Jan. 1 as Warren Buffett stepped down after six decades and remains chairman after giving a strong public endorsement.
  • Berkshire shares fell more than 1% on Abel’s first trading day, and the stock has lagged the S&P 500 since May in what analysts call a “succession discount.”
  • The company reported about $381.7 billion in cash and T-bills as of Sept. 30 with no buybacks since May 2024, focusing attention on potential repurchases, acquisitions or a dividend.
  • Todd Combs left for JPMorgan in December, leaving Ted Weschler as the primary steward of a $300 billion–plus equity portfolio and prompting questions about future oversight.
  • Analysts expect Abel, a longtime operator from Berkshire Hathaway Energy, to emphasize operating strengths and tighter headquarters roles as his early capital-allocation moves are scrutinized.