Berkshire Hathaway shares dip as Warren Buffett exits and Greg Abel era begins

Berkshire Hathaway Stocks fell Friday as investors digested the official end of Warren Buffett’s six-decade tenure as CEO and the beginning of a new era under his successor, Greg Abel.

Class A shares fell 1.7% in afternoon trading on Abel’s first day as CEO, following Buffett’s formal handover and the close of one of the most important leadership roles in the company’s history.

The Omaha-based holding company completed 2025 with a 10.9% gain, falling behind the S&P 500’s 16.4% rise, but achieving positive returns for the 10th consecutive time. Buffett, 95, remains chairman and has sought to reassure shareholders that Berkshire’s future extends well beyond his tenure.

“I think it has a better chance of being here 100 years from now than any other company I can think of,” Buffett said in an exclusive interview with CNBC.

Abel took over as Berkshire generated a record $381.6 billion in cash as of the end of September after a long period of net share sales. Buffett said Abel will have final authority over capital allocation decisions.

“Greg will decide,” Buffett said. “I can’t imagine how much more he can accomplish in a week than I can in a month…. I would rather have Greg manage my money than any of the best investment advisors or the best CEOs in the United States.”

Berkshire shares lagged the broader market after Buffett announced his retirement in May, as some investors weighed whether Abel could justify a premium valuation while overseeing the conglomerate’s broad businesses and equity portfolio with the same touch.

Buffett leaves with an unmatched record. After gaining control of Berkshire in the mid-1960s, he transformed a struggling textile manufacturer into a compounding powerhouse. From 1964 to 2024, Berkshire generated compound annual returns of 19.9%, nearly double the S&P 500’s 10.4%, resulting in overall returns of more than 5.5 million percent.