Is Berkshire Hathaway still Berkshire without Warren Buffett?

That is the question being heard through boardrooms, trading floors, and living rooms following the investing legend's revelation of his stepping down as CEO during the 2025 shareholder meeting. At age 94, Warren Buffett is retiring after more than six decades in charge at Berkshire Hathaway, leaving a $1.16 trillion behemoth and a lasting mark in investing history.

But this isn't a tale of endings—it's one of change, struggle, and the beginnings of Berkshire Hathaway 2.0.

The Big Announcement: Buffett Passes the Torch

During his annual presentation to 20,000 shareholders in Omaha Buffett made official what many expected: Greg Abel will assume the CEO role starting from January 1st 2026. The transition will be smooth because Buffett plans to stay as chairman. As Berkshire's executive in charge of non-insurance businesses since 2018 Abel takes over the company which holds a cash reserve of nearly $348 billion and 189 subsidiaries.

According to Buffett, the core understanding of business operations and effective capital allocation strategies makes Abel a strong leader.

Market Reaction: A Dip in Confidence?

The market displayed nervousness even though the succession process happened smoothly. Stock prices for Berkshire Hathaway declined by nearly 5.5% after the company made the announcement, which triggered investor concerns about the period following Buffett's departure. People respect Abel for his operational skill, but achieving the same investment success as Buffett remains an incredibly challenging task.

The Cash Conundrum: $348 Billion and Counting

The first priority for Abel regarding Berkshire Hathaway's cash reserves is their effective distribution. Throughout his career, Buffett has demonstrated remarkable patience when pursuing investment opportunities. The cash reserves at Berkshire Hathaway exceeded $182 billion during the first quarter of 2025, before analysts predicted they would reach $200 billion in the second quarter of 2025.

Buffett stated that the company would love to invest its cash, but it refuses to unless it finds a low-risk opportunity that can generate significant profits.

Strong Businesses You Don’t Hear About Much

Most individuals associate Berkshire Hathaway with stocks, but it owns more than 60 companies outright, such as Dairy Queen, GEICO, and BNSF Railway.

These firms provide Berkshire with stable income year after year. Even if the stock market is unstable, individuals continue buying ice cream, taking trains, and driving cars covered by GEICO insurance. That's why these companies are the pillar of the company.

Portfolio Moves: Trimming Apple, Exiting Paramount

Berkshire Hathaway cut its Apple stock holdings by approximately 13% but maintained the position as its biggest investment portfolio asset at $135.4 billion. According to Buffett, Apple maintained its status as a fundamental investment for the Berkshire Hathaway portfolio.

Berkshire Hathaway completely disposed of all Paramount Global stock, resulting in financial losses. Buffett accepted total accountability for the decision by saying, "I was 100 percent responsible." He understood the mistake he had made.

AI and Climate: New Frontiers, New Risks

During an interview, Buffett demonstrated his apprehension about AI by linking its effects to the destructive power of nuclear weapons. During his interview, he explained that AI systems possess the ability to generate both positive and negative outcomes, with AI scams representing one of the major risks.

The energy businesses running under Berkshire Hathaway operate with substantial challenges when it comes to climate change. The PacifiCorp unit of the company has spent more than $1 billion on wildfire settlements while facing billion-dollar claims. According to Buffett, the situation required regulatory reforms to handle growing liabilities.

Cultural Continuity: The Berkshire Way

Abel assured shareholders that the culture of the company would not change. "I think we have a very special company at Berkshire. And that's not going to change," he said.

Buffett's lighter moments during the meeting, including a slip in which he called Abel the late Charlie Munger, brought laughter and emphasized the camaraderie that characterizes Berkshire Hathaway's leadership.

What Shareholders Are Saying

The stockholders of Berkshire Hathaway maintain a peaceful attitude along with positive expectations. Why? Stockholders trust Berkshire Hathaway because of how the company has been strategically constructed.

According to one shareholder, Warren established the original foundation of the company. Greg merely extends the company with a new upper level. Abel only needs to continue construction with caution because the solid foundation exists.

30,000 people gathered at the meeting in Omaha, Nebraska, to demonstrate their deep trust and support for the company.

Looking Ahead: Berkshire Hathaway 2.0

The new phase for Berkshire Hathaway requires Abel to determine the direction of the conglomerate. Berkshire Hathaway holds significant cash reserves and diverse investments that position the company to seize upcoming business prospects. The organization faces unknown challenges because Buffett is no longer providing his leadership.

The investment community and analyst community will carefully observe Abel's methods of managing Berkshire Hathaway through the complex challenges of global markets and technological shifts alongside climate issues.

Everyday Businesses That Matter

In addition to its well-known investments, Berkshire Hathaway maintains ownership of real-world business entities, which include:

• BNSF Railway (trains)
• Clayton Homes (housing)
• See’s Candies (yes, the chocolates!)
• Duracell (batteries)

The smaller businesses under Berkshire Hathaway operations generate constant revenue streams while sustaining workforce employment. The operations of Berkshire Hathaway extend beyond Wall Street to establish deep connections with the daily activities of people.

What’s Next for Berkshire?

The company maintains its strength despite Buffett's reduced involvement. Berkshire Hathaway boasts intelligent leadership, together with exceptional business units and substantial financial resources.

The organization refuses to pursue fashionable trends. The company maintains its original approach by purchasing solid businesses that will endure indefinitely while they develop naturally.

The transition under Greg Abel appears smooth because Buffett continues to advise him even though he has substantial footwear to replace.

Final Thoughts: The Legacy Continues

Warren Buffett's retirement signifies the conclusion of a historic era for Berkshire Hathaway, although the company remains on course to advance into the future. The company maintains its position to carry on with value investing and prudent management through its established foundation and detailed succession plan.

People throughout the world are watching eagerly to observe Berkshire Hathaway's development under its successor after Warren Buffett's retirement.

FAQs:

1. When will Warren Buffett step down as CEO of Berkshire Hathaway?
   Warren Buffett will step down as CEO starting from January 1st, 2026.
    
2. Who will be the next CEO of Berkshire Hathaway?
   Greg Abel will assume the CEO role. Warren Buffett will remain as chairman.  
    
3. How did the market react to the announcement of Buffett's succession?
   Berkshire Hathaway's stock prices declined by approximately 5.5% after the announcement, indicating some investor nervousness.
    
4. What are some of the key businesses owned by Berkshire Hathaway besides stocks?
   Berkshire Hathaway owns over 60 companies outright, including Dairy Queen, GEICO, and BNSF Railway.
    
5. What are some of the challenges and opportunities facing Berkshire Hathaway under new leadership? Challenges include navigating global markets, technological shifts, and climate issues without Buffett's direct leadership. Opportunities lie in deploying significant cash reserves and leveraging diverse investments.