Greg Abel, in his inaugural letter as Chief Executive Officer of Berkshire Hathaway, acknowledged the immense legacy left by Warren Buffett, who recently retired after leading the company for six decades. Abel described Buffett as a “very hard act to follow” and expressed his commitment to maintaining the core principles that have guided Berkshire’s success.
Buffett’s tenure transformed Berkshire Hathaway from a struggling textile manufacturer into a diverse conglomerate valued at over $1 trillion. Under his leadership from 1965 to 2025, the company delivered a total shareholder return of approximately 6,100,000%, vastly outperforming the S&P 500’s 46,100% gain during the same period. Buffett’s compound annual growth rate of 19.7% nearly doubled that of the index, which averaged 10.5% annually.
In his letter, Abel paid tribute to Buffett’s patience, sound judgment, investment expertise, and lasting impact as a CEO and educator. Abel also highlighted the unique corporate culture Buffett and longtime partner Charlie Munger built. He introduced himself to shareholders with a touch of humor, noting that unlike Buffett’s 60-year CEO tenure, his own time in the role would likely be much shorter.
Affirming continuity, Abel emphasized his understanding of Berkshire’s foundational values, including its decentralized management style, integrity, financial strength, capital discipline, risk management, and operational excellence. Addressing concerns over Berkshire’s cash reserves, which exceed $370 billion, he stated there would be no hasty investments or dividend increases. Abel described the cash as both a reserve for downturns and capital for strategic acquisitions, but stressed the importance of disciplined spending regardless of the cash pile’s size.
Abel’s letter offered insights into key investments and personnel shifts within the company. He acknowledged the disappointing performance of Berkshire’s stake in Kraft Heinz, describing its returns as “well short of adequate,” echoing Buffett’s own critical remarks about the company. The letter also detailed Berkshire’s significant investments in five Japanese companies acquired in recent years, valued at $35.4 billion at the end of December, with $862 million in dividends received during the past year.
Additionally, Abel noted that Ted Weschler now manages approximately 6% of Berkshire’s portfolio, having taken over from Todd Combs. Weschler’s role extends beyond investment management to advising on major opportunities and supporting broader business operations, making him an important member of Abel’s leadership team.
Abel also signaled a shift in Berkshire’s annual shareholder meeting format. Rather than Buffett and Munger answering all questions, Abel will participate alongside key executives Ajit Jain, Katie Farmer, and Adam Johnson, illustrating a move toward a broader leadership presence.
Overall, Abel’s letter reassured shareholders of a steady hand at the helm, respecting Warren Buffett’s legacy while preparing Berkshire Hathaway for the future under new leadership.
