End of an Era: Buffett’s final day as CEO sees shares slip slightly
Berkshire Hathaway shares edged lower as Warren Buffett prepared to hand over the chief executive role to Greg Abel, marking a historic leadership transition while highlighting the company’s unmatched long term investment record.
By Anupam Nagar, ETMarkets.com |
AP
A new chapter begins at Berkshire Hathaway as Warren Buffett hands the reins to Greg Abel.
Berkshire Hathaway shares closed slightly lower on Wednesday as Warren Buffett prepared to step down as chief executive, passing leadership to Greg Abel on Thursday. Class A shares edged down $600, or 0.1%, to $754,800, while Class B shares fell $1.06, or 0.2%, to $502.65. The broader Standard & Poor’s 500 index declined 0.7% on the day.
Since Buffett took over Berkshire in 1965, investors in the company have realised extraordinary returns of about 6,100,000%, vastly surpassing the S&P 500’s approximate 46,000% return over the same period, including dividends, according to a Reuters report.
Despite the index outperforming in 2025 and over the last decade, Berkshire has maintained a remarkable streak of never having a down year, even as Buffett faced challenges in deploying the conglomerate’s $1.08 trillion capital effectively.
Berkshire’s portfolio of subsidiaries is diverse, spanning insurance, railroads, energy, manufacturing and retail. Major holdings include Geico, BNSF Railway, Berkshire Hathaway Energy, and retail brands such as Brooks, Dairy Queen, Fruit of the Loom and See’s Candies. As of September, the company held $381.7 billion in cash and cash equivalents.
Greg Abel, 63, who joined Berkshire in 2000 with the acquisition of MidAmerican Energy, now Berkshire Hathaway Energy, has served as vice chairman overseeing the company’s non insurance operations since 2018. Warren Buffett, 95, will remain as chairman and continue his daily presence at Berkshire’s Omaha headquarters to assist Abel during the transition.
Vice Chairman Ajit Jain will continue overseeing Berkshire’s insurance operations, while Abel will monitor the railroad, manufacturing and energy businesses. Leadership changes in the consumer products, service and retail divisions are also underway, with NetJets chief executive Adam Johnson taking on direct oversight responsibilities previously handled by Abel.
Also Read | Mutual funds increase cash allocation by over Rs 14,500 crore in 2025; 5 new AMCs join in
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
Since Buffett took over Berkshire in 1965, investors in the company have realised extraordinary returns of about 6,100,000%, vastly surpassing the S&P 500’s approximate 46,000% return over the same period, including dividends, according to a Reuters report.
Despite the index outperforming in 2025 and over the last decade, Berkshire has maintained a remarkable streak of never having a down year, even as Buffett faced challenges in deploying the conglomerate’s $1.08 trillion capital effectively.
Berkshire’s portfolio of subsidiaries is diverse, spanning insurance, railroads, energy, manufacturing and retail. Major holdings include Geico, BNSF Railway, Berkshire Hathaway Energy, and retail brands such as Brooks, Dairy Queen, Fruit of the Loom and See’s Candies. As of September, the company held $381.7 billion in cash and cash equivalents.
Greg Abel, 63, who joined Berkshire in 2000 with the acquisition of MidAmerican Energy, now Berkshire Hathaway Energy, has served as vice chairman overseeing the company’s non insurance operations since 2018. Warren Buffett, 95, will remain as chairman and continue his daily presence at Berkshire’s Omaha headquarters to assist Abel during the transition.
Vice Chairman Ajit Jain will continue overseeing Berkshire’s insurance operations, while Abel will monitor the railroad, manufacturing and energy businesses. Leadership changes in the consumer products, service and retail divisions are also underway, with NetJets chief executive Adam Johnson taking on direct oversight responsibilities previously handled by Abel.
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Also Read | Mutual funds increase cash allocation by over Rs 14,500 crore in 2025; 5 new AMCs join in
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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