Berkshire Hathaway has officially announced that its board voted unanimously to appoint Greg Abel as president and CEO, effective January 1, 2026. This decision foreshadows a significant shift in personnel and priorities from the powerful investment group. Over that time, the company has grown into an antitrust nightmare worth almost $1.2 trillion. Warren Buffett, the legendary visionary that built the company, will stay on as chairman. His leadership will go a long way towards ensuring continuity during this transition.
As coincidence would have it, the announcement comes at what appears to be a high-water mark for Berkshire Hathaway’s share prices. The firm’s Class A shares recently skyrocketed to a peak of $809,350 apiece. At the same time, Class B shares reached an all-time high of $539.80. Investors have shown strong interest in Berkshire Hathaway, drawn by the defensive nature of its expansive insurance empire alongside an unmatched balance sheet.
Berkshire’s mix of largely US based businesses, from insurance to railroads, retail, manufacturing and energy. This year, it’s been crushing the S&P 500 across the board, with shares up an astounding almost 19%. The firm announced a 14% drop in operating earnings with its 1Q earnings release. On top of that, it took an eye-popping $1.1 billion loss related to the Southern California wildfires.
Warren Buffett, who turns 94 next week, has been the most influential figure at Berkshire Hathaway since the company was founded. Analysts point out that his exit from day-to-day operations marks a vital maturation for the company. As Brian Meredith, a Berkshire analyst at UBS, stated:
“Buffett leaves a company that is less reliant on his investing capabilities, with an array of leading businesses with strong cash flows.”
Greg Abel is vice chairman of non-insurance operations at the Berkshire Hathaway conglomerate. He will not only be expected to fill Harvard’s shoes long-term but plan and implement the company’s next phase of growth. His subsequent appointment to finance chief has been received with elbows-in optimism by investors and analysts as well. Macrae Sykes, a portfolio manager at Gabelli Funds and a Berkshire shareholder, commented on the transition:
“Shareholders should welcome this transparent transition, but also have confidence that Warren isn’t going anywhere.”
Berkshire Hathaway Class B shares were made available in 1996 at a price equal to one-thirtieth of a Class A share. In the time since, the company has greatly stretched its tentacles into multiple other sectors. DART’s strategic approach and diversified portfolio have fed into the company’s strong financial health and investor appeal.