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Buffett Hands Reins to Greg Abel as Berkshire Shares Slip

Attention shifts to capital allocation, with uncertainty over equity oversight after Todd Combs' departure.

Overview

  • Warren Buffett officially stepped down as CEO on Jan. 1 and remains chairman, delivering a forceful CNBC endorsement that Abel should handle his money over top advisers or CEOs.
  • Berkshire Hathaway shares fell more than 1% on Abel’s first trading day and have trailed the S&P 500 since May, a performance gap analysts describe as a succession discount.
  • The conglomerate reported $381.7 billion in cash and short‑term investments as of Sept. 30, with no Berkshire share repurchases disclosed since May 2024, heightening scrutiny of deployment plans.
  • Todd Combs’ move to JPMorgan leaves Ted Weschler as the primary manager of Berkshire’s roughly $300 billion public‑stock portfolio, sharpening questions about investment stewardship.
  • Analysts highlight three early tests for Abel: deploying the cash hoard, expanding his remit across insurance and non‑insurance units, and professionalizing headquarters without eroding Berkshire’s decentralized culture.