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Buffett to Step Down as CEO; Greg Abel to Lead Berkshire With Record Cash Pile

Investors await Abel's first moves with a vast cash reserve under growing scrutiny.

Overview

  • Warren Buffett will retire as Berkshire Hathaway CEO on Dec. 31 and remain chairman, with vice chairman Greg Abel assuming the top job on Jan. 1.
  • Berkshire’s cash reached a record above $350 billion in recent filings—$382 billion excluding Treasury payables—while third-quarter operating income rose 34% to $13.5 billion.
  • The company has been a net seller of equities for 12 straight quarters, largely sidestepping the AI rally while making only selective buys such as a small Alphabet stake.
  • A strategist told CNBC the stock is trading at a “succession discount,” reflecting investors’ wait-and-see stance on Abel’s leadership and capital decisions.
  • Analysts say Abel could pursue large acquisitions or investments in areas such as utilities, rail, insurance, or Japanese trading houses, or consider expanded buybacks or dividends.