Berkshire Hathaway‘s Greg Abel used his first annual shareholder letter as chief govt to reassure buyers that the conglomerate’s tradition of economic conservatism and disciplined investing established below Warren Buffett will proceed “into perpetuity.”
“I’m honored by our Board’s choice to nominate me CEO of Berkshire and humbled to succeed Warren as I write my first annual letter to you,” Abel wrote within the missive to start the corporate’s annual report launched Saturday together with Berkshire’s quarterly earnings. “Warren is clearly a really laborious act to comply with.”
Abel, 63, signaled continuity relatively than change as he takes the reins from the 95-year-old Buffett, who stepped down as CEO at the beginning of 2026 and stays chairman. The brand new CEO laid out a transparent framework of foundational values for the way he intends to maintain working the conglomerate: to protect its monetary power and preserve strict capital self-discipline.
“We preserve a fortress-like stability sheet, making certain Berkshire’s basis is rarely compromised,” he wrote. “We protect this monetary power through the use of debt sparingly and prudently. Our substantial liquidity permits us to satisfy our obligations even below essentially the most adversarial situations and to reply swiftly when alternatives come up.”
Different values he highlighted included a decentralized administration mannequin and “popularity for integrity.”
Berkshire’s money pile stood at $373.3 billion on the finish of 2025. Abel described the mountain of money as strategic dry powder, which permits the corporate to behave decisively when alternatives floor with out jeopardizing resilience. Abel additionally used the letter to push again on any notion that the sizable money place signified that Berkshire was retreating from investing.
However Abel famous he’ll proceed Berkshire’s long-standing resistance to paying a dividend.
“Our method to money dividends continues to be that Berkshire won’t pay dividends as long as a couple of greenback of market worth for shareholders within reason more likely to be created by every greenback of retained earnings,” Abel wrote, including that the board critiques the coverage yearly.
Overseeing inventory portfolio
Abel emphasised that Berkshire applies the identical disciplined framework whether or not it’s buying a complete enterprise, shopping for shares of a public firm or repurchasing its personal inventory.
“We are going to assess worth rigorously, act patiently, and maintain for the long run — ideally ceaselessly,” he wrote.
He added that Berkshire’s fairness portfolio will stays concentrated in a small group of American firms, together with Apple, American Specific, Coca-Cola and Moody’s, that he mentioned Berkshire expects to compound over a long time. Notably absent from that listing was Financial institution of America, which ranked as Berkshire’s third largest holding on the finish of 2025.
Abel mentioned the concentrated method will proceed, with restricted buying and selling exercise, although Berkshire would “considerably modify” a place if long-term financial prospects change.
He additionally settled a key query hanging over the management transition: he’ll immediately oversee the fairness portfolio. Ted Weschler will proceed to handle about 6% of the portfolio, together with investments beforehand overseen by Todd Combs, an funding supervisor and Geico CEO who left for JPMorgan not too long ago.
“At Berkshire, fairness investments are elementary to our capital allocation actions; duty in the end resides with me as CEO,” Abel wrote.
Lengthy-term dedication
Abel has been identified internally as a hands-on operator with a deep bench of subsidiary CEOs reporting to him. The Canadian govt, born in Edmonton, Alberta, has a 25-year tenure at Berkshire below his belt. Abel joined Berkshire in 2000 when the conglomerate purchased MidAmerican Power, the place he finally grew to become the CEO in 2008. Previous to that, Abel labored at CalEnergy the place he reworked the small geothermal agency right into a diversified power enterprise.
He underscored that he views the function as a long-term dedication as he intends to steward Berkshire for many years.
“Our house owners’ time horizon extends past the tenure of any particular person CEO,” he wrote. “I cannot be your CEO for the following 60 years as easy arithmetic makes that – let’s assume – an bold plan. Nonetheless, 20 years from now, when I’ll have only a fraction of the tenure that Warren had, my intention is that you simply – or your descendants – will likely be proud that your organization is even stronger.”
He famous that Buffett stays actively engaged as chairman, coming into the workplace 5 days every week and persevering with to offer enter.
Abel additionally made clear that Berkshire won’t undertake Wall Avenue’s typical cadence of quarterly earnings calls.
“We focus on high quality, not frequency. If a major subject arises, you’ll hear from me, but it surely won’t be via quarterly commentary, given our long-term horizon,” he wrote.