It's now official. The Greg Abel era, as he takes the helm of Berkshire Hathaway, succeeding the legendary Warren Buffett, begins on January 1, 2026. And investors have one question: what will he do with the $358 billion cushion the firm has accumulated over the past few years?
The figure is a record. And, in the last 12 consecutive quarters, Berkshire, under Buffett's leadership, has sold more shares than it has bought. In the first nine months of 2025, the asset manager sold $10 billion more in shares than it bought. Last year, Buffett made his last multi-billion dollar deal: the purchase of OxyChem for $10 billion.
The 16% rise in the S&P 500 index in 2025 has made many market sectors seem expensive for a bargain-hunting investor, such as Berkshire Hathaway. The company, which historically conducts large share buybacks, has also refrained from repurchasing its own shares for five consecutive quarters.
The accumulation of cash, however, could be considered a problem for Abel – although perhaps it's a good problem. The new Berkshire CEO earned Buffett's trust long ago.
As vice chairman, the 63-year-old executive has led all of Berkshire's non-insurance businesses since 2018. "Greg has exceeded my expectations in every respect. And I expect him to remain in the role for 20 years or more," said Buffett, 95, in a recent statement to The Wall Street Journal (WSJ).
At the 2025 annual meeting last May, Abel stated that the cash reserve is a "huge asset" that offers Berkshire protection in the event of a market recession. "We will continue to be Berkshire," Abel said at the time. "The way Warren and the team have allocated capital over the past 60 years will not change."
The fact is that even those who follow in Buffett's footsteps and admire him have doubts about the future of Berkshire without Buffett and under Abel's leadership.
Cesar Paiva, partner and CEO of the asset management firm Real Investor, considered a kind of "Warren Buffett of Londrina," is one of those who are pessimistic about the firm's performance from now on.
“Buffett and Munger (Buffett's partner, who died in 2023) are unique. They will certainly be greatly missed,” said Paiva, in an interview with Café com Investidor, a NeoFeed program that interviews leading investors in Brazil ( see the full interview below ).
He continued, adding that he believes it will be difficult for another investor close to Buffett's genius to emerge. "Buffett was born in the 1930s and experienced the entire boom of the American economy. I believe it will be difficult to see that boom in that form again," Paiva stated.
The fact is that, even before Buffett retired, changes had already begun to happen at Berkshire . Last December, Berkshire announced its biggest restructuring in recent years, which included, among other changes, an unexpected departure (Todd Combs), a retirement (Marc Hamburg), and the creation of a new position in the company's organizational chart.
Todd Combs, hired by the 'Oracle of Omaha' in 2010 and considered by many to be a key leader at Berkshire post-Buffett, was the CEO of the insurance company Geico, one of the company's jewels. He went on to head a new investment unit at JP Morgan and serve as a special advisor to CEO Jamie Dimon.
Berkshire's CFO since 1992, Marc Hamburg, will leave his post in June 2026, which will be taken over by Charles Chang, the current CFO of Berkshire Hathaway Energy. To facilitate the transition, Hamburg will postpone his retirement until June 2027.
Michael O'Sullivan will fill the new position created by the company, becoming Berkshire's first general counsel, effective January 1st.
This restructuring did not boost Berkshire's stock, which has fallen 6% since Buffett announced his retirement last May. Even so, the firm's market capitalization, which surpassed $1 trillion in 2024, remains at this level, making it one of only two non-tech companies in the US to reach this milestone.
Berkshire's new CEO is a Canadian who, as a child, delivered advertising flyers door-to-door, traded bottles for money, and refilled fire extinguishers. He grew up playing hockey and is an assistant coach for his son's hockey team.
Abel attributes the development of his leadership skills to team sports. "If I had to be remembered for something now, obviously I'd like to be remembered as a great father, but also as a great coach," Abel said at the 2025 assembly.
Now, he will have the mission of preserving Buffett's legacy, as well as maintaining the performance of Berkshire, which has built a vast conglomerate employing around 400,000 people and boasting a wide range of businesses, including BNSF Railway, Dairy Queen, Duracell, Fruit of the Loom, and Geico.
The asset manager owns so many companies in so many sectors that it is sometimes seen as an indicator of the American economy. Abel's mission may be facilitated by the enormous liquidity cushion of US$358 billion.
