Greg Abel hails Warren Buffett as a 'very hard act to follow' in his first letter as Berkshire Hathaway CEO

Core Insights - Greg Abel, the new CEO of Berkshire Hathaway, reassured shareholders in his first letter that he would maintain the company's foundational values and not make drastic changes following Warren Buffett's long tenure [1][4]. Group 1: Leadership Transition - Warren Buffett's leadership resulted in a remarkable 6,100,000% return for Berkshire shareholders from 1965 to 2025, significantly outperforming the S&P 500's 46,100% return [2]. - Abel acknowledged the challenge of following Buffett and continued the tradition of writing an annual shareholder letter [2][3]. Group 2: Company Values and Strategy - Abel emphasized Berkshire's "foundational values," including its decentralized model, integrity, financial strength, capital discipline, risk management, and operational excellence [4]. - He indicated that there would be no rushed deals or immediate dividend payouts, viewing Berkshire's cash reserves as both a safety net and a resource for future investments [5]. Group 3: Investment Insights - Abel described the investment in Kraft Heinz as "disappointing," reflecting a return that was "well short of adequate" [6]. - He provided details on Berkshire's investments in Japanese companies, noting a total investment of $15.4 billion that was valued at $35.4 billion as of December, along with $862 million in dividends received last year [7]. - Ted Weschler now manages about 6% of Berkshire's investments, taking over Todd Combs' portfolio, and is positioned as a key deputy to Abel [7][8]. Group 4: Future Governance - Abel plans to shift the Q&A format at Berkshire's annual meeting, involving other key executives like Ajit Jain, Katie Farmer, and Adam Johnson, rather than solely relying on Buffett and Munger [9].