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Buffett Hands CEO Role to Greg Abel as Berkshire Faces Big Capital Decisions

Investor focus shifts to Abel's plan for Berkshire's $381.6 billion cash reserve, including the fate of its giant equity portfolio.

Overview

  • Greg Abel becomes Berkshire Hathaway's chief executive on Jan. 1, succeeding Warren Buffett after six decades.
  • Buffett stays on as chairman and says he is "going quiet," while Abel takes over the annual shareholder letter.
  • Berkshire holds a record $381.6 billion in cash as of September and has been a net seller of equities for 12 consecutive quarters.
  • The roughly $300 billion stock portfolio draws heightened scrutiny, with some analysts suggesting active stock selection could be pared back given its size and concentration.
  • Buffett's tenure produced compounded annual gains near 20% and an overall return above 5.5 million percent, built on insurance float and long-term ownership of durable businesses.