Wednesday Is Warren Buffett’s Last Day. Is Berkshire Hathaway a Buy Without Him?

Core Insights - Warren Buffett's retirement marks the end of a significant era for Berkshire Hathaway, with Greg Abel set to take over as CEO on January 1 [2][3] - Buffett achieved over 5 million percent returns, averaging about 20% annually, significantly outperforming the S&P 500 [3] - The transition raises questions about Berkshire's attractiveness as an investment without Buffett's leadership [3] Buffett's Investment Philosophy - Buffett's value-driven investment style has been pivotal to Berkshire's success, focusing on acquiring high-quality businesses at reasonable prices and holding them long-term [4] - His legacy includes iconic investments in companies like Coca-Cola and American Express, showcasing a patient and principled approach to investing [5] - Buffett emphasized intrinsic value, economic moats, and disciplined capital allocation, fostering a decentralized culture within the company [5] Leadership Transition - Greg Abel, with extensive experience at Berkshire since 2000, is expected to maintain the company's value-oriented strategy, focusing on acquiring undervalued assets and prioritizing strong cash flows [6] - Abel has successfully grown Berkshire Hathaway Energy into a significant player in utilities and renewables, aligning with Buffett's long-term mindset and capital discipline [6] - Berkshire Hathaway currently holds $380 billion in cash, providing Abel with a strong foundation as he takes over [7] Market Position - Berkshire Hathaway trades at 1.5 times its book value, reflecting some uncertainty regarding the transition and concerns about losing the "Buffett premium" [7]