Berkshire Hathaway shares dip as Warren Buffett exits and Greg Abel era begins

Core Insights - Berkshire Hathaway shares experienced a decline of up to 1.4% on the first day of Greg Abel as CEO, following Warren Buffett's retirement after a six-decade tenure [1] - The company ended 2025 with a gain of 10.9%, which was lower than the S&P 500's 16.4% increase, marking its 10th consecutive year of positive returns [2] - As of the end of September, Berkshire Hathaway holds a record cash reserve of $381.6 billion, with Abel now having final authority over capital allocation decisions [3] - Buffett's leadership transformed Berkshire from a struggling textile company into a significant investment powerhouse, achieving a compounded annual gain of 19.9% from 1964 to 2024, compared to the S&P 500's 10.4% [4] Group 1 - Berkshire Hathaway shares fell as much as 1.4% on Abel's first day as CEO, with a last trade at 0.5% lower [1] - The company achieved a 10.9% gain in 2025, trailing the S&P 500's 16.4% advance [2] - Buffett reassured shareholders about Berkshire's long-term future beyond his tenure [2] Group 2 - Berkshire Hathaway has a record cash reserve of $381.6 billion as of September, with Abel in charge of capital allocation [3] - Buffett expressed confidence in Abel's capabilities, stating he would prefer Abel managing investments over top advisors [3] - The company has lagged the broader market since Buffett announced his retirement, raising concerns about Abel's ability to manage its vast operations [3] Group 3 - Buffett's leadership resulted in a compounded annual gain of 19.9% for Berkshire from 1964 to 2024, significantly outperforming the S&P 500 [4] - The overall return for Berkshire during Buffett's tenure exceeded 5.5 million percent [4]