Berkshire Hathaway Sheds 5% Post-Buffett Retirement: Is the Stock Still Attractive with Greg Abel as Chief Executive?
Berkshire Hathaway Bids Farewell to the Oracle of Omaha - But Investors Aren't Saying Goodbye
In a seismic shift for the world of investing, Warren Buffet, the legendary CEO of Berkshire Hathaway, announced his resignation, effective at the end of 2025. This monumental decision sets the stage for Greg Abel, Buffet's handpicked successor, to take the reins. As the marquee movement in finance since the dawn of the digital age, the news sent ripples throughout financial markets, and Berkshire's stock taking a temporary nosedive of close to 5%.
Shares of Berkshire Hathaway (BRK.B) (BRK.A) dropped like a stone in early Monday trading, reflecting a storm of uncertainty, profit-taking, and emotional gut-punches for shareholders who have grown accustomed to viewing Buffet as the indispensable artery of the corporation. The question du jour: is Berkshire Hathaway still a buy?
Enter Greg Abel: Buffet's Right-Hand Man
Greg Abel, 62, is no stranger to Berkshire's inner sanctum. He first joined the company in 2000 through the acquisition of MidAmerican Energy (now part of Berkshire Hathaway Energy) and has steadily climbed the corporate ladder to become Vice Chairman of Non-Insurance Operations in 2018 - a meteoric rise that points to an impressive career trajectory. Under Abel's command, he has overseen a wide array of Berkshire's portfolio, including its sprawling utility, railroad, industrial, and retail businesses.
Market Volatility or Opportunity?
Berkshire's 5% drop echoes investors' apprehension about life after Buffet. Yet, it's also crucial to consider a historical pattern: when iconic leaders step down, stocks may dip, but they tend to recover and continue to thrive.
Take, for example, Apple after Steve Jobs passed the baton to Tim Cook, or Microsoft when Bill Gates exited the stage - both cases where the stocks ultimately persevered. Abel's tenure at Berkshire Hathaway Energy offers a glimpse of his credibility, making him a suitable candidate to keep the company afloat.
As the energy sector undergoes tectonic shifts, driven by the expanding aurora of AI, electric vehicles, and renewable energy, it's essential to acknowledge the growing importance of utility companies like Berkshire Hathaway. With Abel at the helm, Berkshire is well-positioned to capitalize on these burgeoning opportunities.
Here are a few tips to keep in mind:
- Dive headfirst into the fascinating and little-explored world of AI - an industry that's still primed for investment
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Riding the Waves of Change
With Buffet stepping back, Berkshire may experience a temporary reduction in the "Buffett Premium" - the mystique that primes shareholders with impenetrable loyalty and lasting stability. But for savvy investors, this dip may present an opportunity to buy low with the expectation of profits in the long run.
Berkshire remains one of the most fundamentally sound companies globally, with a war chest brimming with over $314 billion in short-term U.S. Treasury bills, providing an unparalleled cushion in volatile markets. It also boasts dominant, cash-generating businesses like BNSF Railway, Geico, Berkshire Hathaway Energy, and substantial equity stakes in Apple, Coca-Cola, and American Express.
In essence, Berkshire is a veritable bastion of financial stability and defensive resilience.
Time for a New Era: Is Berkshire Still a Buy?
So, is Berkshire Hathaway still worth investing in long term? For forward-thinking investors, the answer likely remains a resounding yes. Buffet himself will maintain his position as Chairman of the Board, ensuring continuity and experienced guidance during the transition. The new guard will carry on the tradition of Berkshire's core principles, espousing a long-term investment strategy, decentralized management, and a cautious, cash-rich balance sheet. Given Greg Abel's unparalleled expertise in the energy sector and Buffet's endorsement, it would seem that Berkshire remains in competent hands.
In recent years, there's been a shift in focus away from Berkshire's proclivity for "boring" and "basic" businesses towards more dynamic investments creating disproportionate returns. Under Abel's stewardship, Berkshire could capitalize on the expanding landscape of energy and utilities, ensuring that classic Berkshire Hathaway ideals endure while re-energizing the company's approach to capture new opportunities.
History has demonstrated that doubt often gives way to resilience, especially when a transition is planned and the right leader is in place. Greg Abel is not Warren Buffet – but he doesn't have to be. In a company built on consistency, conservatism, and conviction, that might be exactly what investors need.
- Berkshire's stock rebounded after initial dip, positioning itself for long-term growth
- Abel's meteoric career rise and unparalleled expertise in the energy sector give investors confidence
- With Buffet as Chairman of the Board, Berkshire's core principles remain intact
- The energy sector is ripe for growth, presenting opportunities for Berkshire under Abel's leadership
[1] The Incredible Rebound of Berkshire Hathaway's Stock in the First Half of 2025 (Morningstar, 2025)[2] Berkshire Hathaway's Q1 2025 Earnings Report (PR Newswire, 2025)[3] Buffet Continues to Endorse and Support Abel (Investopedia, 2025)[4] Berkshire Hathaway: Stock Price Forecast, Analysis & Outlook (CNBC, 2025)
- Despite Berkshire Hathaway's initial temporary nosedive after Warren Buffet's announcement of his 2025 resignation, the stock has rebounded, positioning itself for long-term growth.
- With Greg Abel at the helm, Berkshire Hathaway continues to hold onto its core principles, fostering a proactive and forward-thinking approach to capitalize on the expanding opportunities in the energy sector.
