The Abel era of Berkshire officially begins, with shares dropping nearly 2% intraday on the first day.

Berkshire Hathaway's stock price fell on Friday as investors are digesting the official end of Warren Buffett's six-decade tenure as CEO, and the major turning point as successor Greg Abel begins a new era.

On the first trading day of 2026, which is also Abel’s first day as CEO, Berkshire opened lower, fell nearly 2% during the session, and closed down 1.1%, underperforming the broader US market. Previously, Buffett has completed the formal handover of his role, marking the end of one of the most legendary periods of leadership in the company's history.

Berkshire Hathaway rose 10.9% for the entirety of 2025, trailing the S&P 500’s 16.4% gain, but nonetheless achieving positive returns for the 10th consecutive year. The 95-year-old Buffett remains chairman and has continually tried to reassure shareholders that Berkshire's future goes far beyond his own tenure.

In a special interview with CNBC, Buffett said, “I think its likelihood of existing 100 years from now is greater than any company I can think of.”

As of the end of September last year, Berkshire’s cash holdings reached a record $381.6 billion, following a prolonged period of net stock sales. Buffett stated that Abel will have the final say on capital allocation decisions. Buffett said:

The decision maker will be Greg Abel. I can't imagine he’ll accomplish less in a week than I do in a month. I’d rather have Greg manage my money than give it to any top investment adviser or top CEO in America.

Since Buffett announced his retirement last May, Berkshire’s share price has underperformed the broader market. Some investors are assessing whether Abel can manage the vast operating business system and stock portfolio at the same level, while continuing to support its premium valuation.

Buffett leaves behind an unrivaled performance record. Since taking over Berkshire in the mid-1960s, he transformed a struggling textile company into a compounding-growth giant. Between 1964 and 2024, Berkshire achieved an annual compounded return of 19.9%, almost twice the S&P 500’s 10.4%, with cumulative returns exceeding 5.5 million percent.

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