Berkshire Hathaway’s new CEO, Greg Abel, took over Jan. 1. – Dan Brouillette/Bloomberg News
The new CEO of Berkshire Hathaway has laid out a vision for the company that suggests he will continue the legacy of his predecessor, Warren Buffett.
“Berkshire’s culture and values form the foundation of our operating system, shape the strategy we follow and the decisions we make as we build Berkshire,” Greg Abel wrote in his first letter to shareholders. “As a CEO, style governs how I lead every day.”
Abel reiterated the many virtues that made the company unusual, and unusually successful, during Buffett’s long tenure: a unique model that gives business managers independence, a large shareholding overseen by the CEO, a profitable insurance empire and a reluctance to buy back Berkshire shares or give a portion of the money.
“Berkshire is a unique institution, designed to distribute funds fairly and efficiently,” Abel wrote. “We are committed to strengthening the great legacy built by Warren Buffett and his business partner Charlie Munger, ensuring that it endures through our commitment to doing good.”
Abel also confirmed to shareholders that Buffett is still working for Berkshire, writing that the Oracle of Omaha is in the office five days a week and is available to consult on matters ranging from insurance underwriting to holdings. But Abel also made it clear that he was now working full time as Berkshire’s top executive, overseeing not only the company’s many businesses but also its stock portfolio.
“At Berkshire, investment funds are critical to our investment operations; a role that will remain with me as CEO,” Abel wrote.
Abel said that investment manager Ted Weschler is responsible for 6% of Berkshire’s portfolio, including a portion held by Todd Combs, another investment manager, who recently camped at JPMorgan Chase.
Macrae Sykes, portfolio manager at Gabelli Funds, said he was pleased that Abel reiterated that he would continue to adhere to Berkshire’s investment principles. And Abel’s writing style, while lacking Buffett’s personality and humor, was interesting, he said.
“I was surprised,” Sykes said.
Berkshire reported a 2.5% drop in quarterly profit after the company earned less from its insurance operations.
Net income was $19 billion, or $13,349 per Class A equivalent share, up from $19.69 billion, or $13,695 per Class A share, in the first-year period.
Berkshire ended 2025 with a record $373.1 billion in cash and Treasury bills after calculating the amount paid to buy some of the government’s short-term debt, an increase of 4% from the previous three months. The company declined to repurchase any of its shares during the quarter, marking the sixth-straight period in which it did not buy back any stock.
“Many times in Berkshire’s history, some observers have suggested that our high income reflects a return on investment. It does not,” Abel wrote.
Buffett, 95, unveiled plans in May to hand over his role as Berkshire’s longtime chief executive to Abel at the end of the year. The company that shares Buffett’s corporate stewardship and savvy investing entered a new season in January with the rise of Abel.
“Warren,” Abel wrote in a letter, “is clearly a very difficult event to follow.”
In planning the agenda for this year’s conference, Abel confirmed one notable change: Buffett will not be on stage. The first of a two-part question-and-answer session with investors will feature Abel and Ajit Jain, CEO of Berkshire Insurance. The second will be with BNSF CEO Katie Farmer and Adam Johnson, Berkshire’s newly appointed president of consumer products, services and retail businesses.
Operating income, which excludes certain investment fees, fell 30% to $10.2 billion from $14.53 billion. Profits from underwriting insurance and investment income declined, while Berkshire reported higher earnings from its BNSF railroad operations and its manufacturing, service and sales businesses.
Buffett said that operating income is the best measure of a company’s performance. Accounting rules require Berkshire to include gains and losses from its investment giant when it reports earnings, meaning short-term fluctuations in the stock market can cause big swings in quarterly earnings.
Berkshire’s Class A shares reached a record high of $809,350 on May 2, before Buffett announced he was stepping down as CEO. Shares have since declined 6.5%, to close Friday at $757. During the same period, the S&P 500 index rose 21%.
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