Berkshire Hathaway's new chief executive used his first letter to shareholders to tell them he plans to run the company much the way Warren Buffett did. Greg Abel, 63, wrote that he intends to keep Berkshire's conservative financial posture and disciplined investment approach "into perpetuity" while Buffett, 95, remains chairman after giving up the CEO role at the start of 2026, CNBC reports.
Abel said Berkshire will continue to operate with what he called a "fortress-like" balance sheet, relying on limited and cautious use of debt and holding substantial liquidity to withstand downturns and move quickly on deals. Berkshire's cash holdings totaled $373.3 billion at the end of 2025, which Abel described as strategic, not a signal that the company is pulling back from investing. He reaffirmed Berkshire's long-standing stance against paying a dividend, saying the company will retain earnings as long as it believes each dollar kept can generate more than a dollar in shareholder value, a policy the board reviews annually.
On capital allocation, Abel said Berkshire will use the same framework whether it is buying whole companies, taking stakes in public firms, or repurchasing its own shares: carefully assessing value, acting patiently and holding investments for extended periods, "preferably forever." He said the stock portfolio will stay concentrated in a small group of US companies, mentioning Apple, American Express, Coca-Cola, and Moody's as core positions expected to compound over decades. Bank of America, currently one of Berkshire's largest holdings, was not on that list. Abel added that Berkshire will trade infrequently but will make large adjustments if a company's long-term outlook changes.
Abel also resolved a succession question by stating he will directly oversee the equity portfolio, with Ted Weschler continuing to manage about 6% of it after Todd Combs's departure to JPMorgan. Noting that Abel didn't try to match Buffett's wit in his first attempt at the annual letter, one investor said that the new CEO struck the right tone and that he seemed to provide the details that Berkshire's largest shareholder would want to know, per the AP. "I have no doubt in my mind that he had Warren in his mind the entire time he was writing this letter," said Adam Mead, who's written about Berkshire Hathaway.
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