Key Points Warren Buffett officially retired from the CEO role at Berkshire Hathaway as of Jan. 1. Greg Abel has assumed CEO duties but will probably concentrate on the operating businesses. Given Todd Combs' unexpected recent departure, it's likely that Ted Wechsler will run the $300 billion equity portfolio, along with a huge amount of cash ready to deploy. 10 stocks we like better than Berkshire Hathaway › 2025 marked the end of an era for Warren Buffett's conglomerate, Berkshire Hathaway (NY ...

Core Viewpoint - Greg Abel has been appointed as the new Chief Executive of Berkshire Hathaway, succeeding Warren Buffett, and will receive a salary increase to $25 million annually starting January 1, 2025 [2]. Group 1: Leadership Transition - Greg Abel officially took over as CEO on January 1, 2025, following his role as vice chairman of non-insurance operations [3]. - Warren Buffett has publicly endorsed Abel, stating he prefers Abel to manage his investments over any top investment advisers or CEOs in the U.S. [2]. Group 2: Compensation Details - Abel's new annual cash salary is set at $25 million, a significant increase from his previous salary of $21 million in 2024 [2][3]. - In addition to his salary, Abel received "other compensation" of $17,250 in 2024 [3]. - For comparison, Warren Buffett's salary in 2024 was $100,000, with "other compensation" amounting to $305,111 [3].

Core Viewpoint - Warren Buffett has stepped down from making final investment decisions for Berkshire Hathaway, with Greg Abel now in charge, although Abel is expected to maintain a similar investment strategy to Buffett's [1][2]. Group 1: Potential Investments - Greg Abel is predicted to increase Berkshire Hathaway's stake in Alphabet, as Buffett had previously regretted not investing sooner, and Abel may appreciate the company's strong cash flow and business moats [4][5][6]. - Dominion Energy is seen as a strong candidate for investment due to its regulated monopoly status and attractive dividend yield of over 4.5%, aligning with Buffett's preference for dividend-paying companies [8][11][12]. - Mitsui is likely to see an increase in Berkshire's ownership, as it currently holds a smaller stake compared to other Japanese companies, and both Buffett and Abel have expressed positive sentiments about their investments in Japan [13][15][16].

Alex Wong / Getty Images News via Getty Images Quick Read Greg Abel became Berkshire Hathaway CEO on January 1 2026 after rising through the company since 1999. Abel inherits a $381.7B cash pile and a $314.6B stock portfolio. Abel owns nearly $170M in this stock and has final authority over capital allocation decisions. If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to ...

Core Insights - Berkshire Hathaway has entered a new era with Greg Abel succeeding Warren Buffett as CEO, following Buffett's impressive 6,100,000% returns over 60 years through value investing [1] - The company is now faced with the challenge of utilizing its record cash reserves of $380 billion amid rising valuations driven by the AI boom [1] Group 1: Leadership Transition - Warren Buffett has officially handed over the CEO position to his protégé, Greg Abel, marking a significant leadership change for Berkshire Hathaway [1] - Abel, a 25-year veteran of the company with extensive experience in energy and industrial operations, is expected to leverage his background in his new role [4] Group 2: Cash Management and Investment Strategy - Analysts suggest that Berkshire must find larger investment opportunities to effectively utilize its substantial cash reserves, or it may face pressure to issue dividends [2] - There is a sentiment among shareholders that the current cash levels are excessive, prompting calls for a shift towards dividend payments [2][3] Group 3: Operational Management - The previous management style under Buffett and Charlie Munger was characterized by a decentralized approach, allowing subsidiaries to operate independently across various industries [3] - Analysts believe that under Abel's leadership, there may be a shift towards a more hands-on management style, potentially enhancing profitability through consolidation and improved operational efficiency [5][6][7]

Core Insights - Warren Buffett is no longer the CEO of Berkshire Hathaway but remains chairman and involved in major decisions [1] - Buffett's investing wisdom continues to be relevant, particularly his two-step test for stock evaluation [2][4] Investment Strategy - The first step in Buffett's test is to determine if earnings can be estimated for at least five years [5] - The second step involves checking if the stock's valuation is reasonable relative to the lower end of the projected earnings range [6] - Buffett emphasizes focusing on stocks within one's "circle of competence" to improve the accuracy of earnings projections [8] Market Analysis - As of early 2026, there are limited stocks that pass Buffett's test, with Berkshire holding a record-high cash stockpile [10] - AbbVie is highlighted as a strong candidate, having navigated its Humira patent cliff and expected to deliver robust earnings growth, with a current market cap of $405 billion and a dividend yield of 2.86% [11][12] - Nucor is another potential stock, benefiting from data center construction and infrastructure investments, with a low forward price-to-earnings ratio of 14.5 [11][12]

Core Insights - Warren Buffett has officially retired as CEO of Berkshire Hathaway after six decades, with Greg Abel taking over on January 1, 2023, facing three significant challenges ahead [1] Group 1: Cash Management Challenges - Abel's primary challenge is to intelligently allocate Berkshire's substantial cash reserves, which recently surpassed $350 billion, exceeding the market values of major companies like Home Depot, Procter & Gamble, and General Electric [2] - Potential uses for this cash include stock buybacks, acquisitions, or dividends, but Buffett has not found these avenues fruitful in recent years, with no share repurchases in the last five quarters and only one dividend paid in 1967 [3][2] - Wall Street and shareholders may not be as forgiving of cash hoarding under Abel as they were with Buffett, making it crucial for Abel to find effective solutions [7][8] Group 2: Operational Responsibilities - Before becoming CEO, Abel managed Berkshire's non-insurance businesses, but identifying profitable acquisitions is a different skill set [9] - Abel will oversee a diverse range of subsidiaries, including insurers like Geico, and manage a stock portfolio valued at approximately $300 billion, requiring significant allocation decisions [11][10] Group 3: Company Culture and Management Style - Buffett and Munger established a culture based on trust, honesty, and long-term thinking, with a decentralized structure allowing autonomy among subsidiaries [12] - Abel is expected to adopt a more hands-on management approach, having already made leadership changes, including appointing Berkshire's first general counsel [13] - The challenge lies in maintaining the established culture while professionalizing the headquarters, as Abel does not have Buffett's extensive track record and must earn the trust of subsidiary management teams [14][13]

Core Insights - Berkshire Hathaway has entered a new era following Warren Buffett's retirement, with Greg Abel taking over as CEO after Buffett's six decades of leadership [1] Company Transition - The transition in leadership has begun quietly, as shares of Berkshire Hathaway experienced a slight decline after the announcement of Abel's appointment [1]

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]

Market Overview - S&P 500 futures are up as the market prepares for the first trading session of 2026, following a 16% gain in 2025, marking the third consecutive annual gain for the index [1] - The Dow and Nasdaq are also expected to open positively after strong performances in the previous year [1] Company Updates - Warren Buffett has officially passed the CEO role of Berkshire Hathaway to Greg Abel, with Buffett leading the company from 1964 to 2024, achieving a compound annual growth rate of 19.9%, approximately double that of the S&P 500 [2] - Argus raised Ulta Beauty's price target to $700 from $650, indicating a nearly 16% upside from 2025's closing price, while maintaining a buy rating [4] - Keefe Bruyette increased the price target for Capital One to $290 from $260, representing nearly a 20% upside from the previous close, while keeping a buy rating [5] - Vertiv shares surged nearly 5% premarket after Barclays upgraded the stock to a buy from hold and raised its price target to $200 from $181, citing substantial upside potential relative to consensus earnings estimates for 2026 and 2027 [8] - Raymond James resumed coverage of Apple with a hold rating and no price target, indicating limited upside due to the current valuation reflecting the company's strengths [9] - Shares of Taiwan Semi increased in premarket trading after receiving a one-year license from the U.S. to import chipmaking equipment into its China operations [10] Industry Insights - Casino revenue in Macao increased by 14.8% year-over-year in December, which is positive for U.S. casino operators with significant exposure to the region, including Wynn Resorts, LVS, and MGM [6] - The Financial Times reported that SpaceX, Anthropic, and OpenAI may consider going public this year, with potential proceeds exceeding those from approximately 200 IPOs in 2025, which would benefit Goldman Sachs' investment banking division [7]