In 1965, Warren Buffett took control of Berkshire Hathaway, a struggling textile maker, and transformed it into one of the most prominent investment conglomerates globally. His leadership has made Berkshire Hathaway a household name and a company closely watched by investors worldwide. After decades at the helm, Buffett announced in May 2025 that he would be stepping down as chief executive, with longtime lieutenant Greg Abel set to take over the role starting in 2026.
Abel recently released his first shareholder letter as CEO on Feb. 28, along with Berkshire Hathaway’s Q4 earnings report and full-year 2025 results. In the letter, Abel paid tribute to Buffett while affirming that the company would continue its investment strategy without pulling back on investing. He emphasized the importance of maintaining a strong balance sheet and liquidity to ensure the company’s financial stability under any circumstances.
Despite the change in leadership, Buffett will remain actively involved in the company as Berkshire’s chairman, providing guidance and input on key decisions. The company’s Class A and Class B shares saw modest gains in 2025, although they trailed behind the S&P 500’s performance for the year. As of Feb. 27, both classes of shares have seen slight increases year-to-date compared to the S&P 500.
Berkshire Hathaway’s portfolio spans various sectors, including tech, finance, consumer staples, energy, and healthcare. The company follows a value investing approach and advises investors to focus on long-term performance rather than short-term fluctuations. With a cash and U.S. Treasury holdings of $373.3 billion, Berkshire Hathaway remains financially robust, despite a decline in operating earnings reported in Q4 2025.
The company’s insurance business saw a decline in earnings, leading to a decrease in overall operating earnings for the year. Abel noted that Berkshire’s insurance operations experienced challenges in 2025, which may impact future business decisions. Despite these challenges, Berkshire Hathaway remains focused on its core investment principles and aims to continue compounding wealth over the long term.
In the final quarter under Buffett’s leadership, Berkshire made adjustments to its portfolio holdings, reducing its stake in Apple and Amazon while adding to Chevron and Chubb. The company’s concentrated approach to investing will continue, with limited activity in existing holdings unless significant changes in economic prospects are observed.
Overall, Berkshire Hathaway under Abel’s leadership remains committed to upholding its legacy as a leading investment conglomerate. The company’s strategic focus on long-term growth and financial stability ensures its position as a key player in the investment world. Buffett’s continued involvement as chairman provides continuity and guidance as Berkshire Hathaway navigates the ever-changing landscape of the financial markets.
