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yesterday

Greg Abel Takes the Helm at Berkshire as Buffett Steps Down and Cash Hits Records

Falling rates are increasing the cost of holding cash, sharpening scrutiny of Abel’s capital-allocation choices.

FILE - Berkshire Hathaway Chairman and CEO Warren Buffett speaks during an interview with Liz Claman on Fox Business Network's "Countdown to the Closing Bell," May 7, 2018, in Omaha, Neb. (AP Photo/Nati Harnik, File)
FILE - Berkshire Hathaway Vice Chairman Greg Abel poses for pictures with shareholders while touring the booths Berkshires companies set up, May 3, 2024, in Omaha, Neb. (AP Photo/Josh Funk, File)
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FILE - Greg Abel is seen at the CenturyLink Center in Omaha, Neb., in this Saturday, May 5, 2018, file photo. (AP Photo/Nati Harnik, File)

Overview

  • Effective Jan. 1, Warren Buffett hands the CEO role to Greg Abel and stays on as chairman.
  • Berkshire’s cash and short-term Treasuries sit at a record level above $350 billion, reaching about $381–$382 billion on some measures.
  • Berkshire has been a net seller for 12 straight quarters, paring Apple and Bank of America, exiting Citigroup, building a new Alphabet stake, adding to Occidental, and pausing buybacks for five quarters.
  • Leadership changes include the December exit of top investment aide Todd Combs to JPMorgan, the appointment of Berkshire’s first general counsel, CFO Marc Hamburg’s planned June 2027 retirement, and Abel’s delegation of more than 30 businesses to NetJets CEO Adam Johnson.
  • Strategists say the stock trades at a “succession discount,” and some expect Abel’s early moves could target energy or defense, reflecting views that pressure is building to deploy or return capital.