Greg Abel has completed his first 100 days at the helm of Berkshire Hathaway. While maintaining the company's core culture, the new CEO is reshaping the world's most closely watched investment group with a more proactive management approach.
Since taking over in January, Abel has begun adjusting the equity portfolio, restarting the share repurchase program, increasing investments in Japan, and promoting long-time deputies.
Compared to his predecessor Warren Buffett, Abel is taking a more active and critical approach to reviewing the company's operations and stock holdings. He is expected to adopt a firmer stance towards subsidiaries, equity positions, and executives that fail to meet expectations.
When discussing Buffett and the late partner Charlie Munger in an interview, Abel stated: "We have some differences, mainly in style and obviously in how we approach things, but our fundamental values have always been the foundation of how we build the company."
For investors, the true test of Abel's capabilities may still lie ahead. Berkshire currently holds a record $373.1 billion in cash. The ultimate challenge for the new leader will be deploying this capital decisively before the next significant economic downturn.
Management Style Shifts from "Hands-Off" to "Hands-On"
Abel officially assumed the CEO role in January, but the substantive transition of power began as early as last May. This was when the 95-year-old Buffett announced at Berkshire's annual meeting his plan to retire by year-end. Abel noted that this marked the true beginning of the transition.
Buffett had publicly stated that even if some managers fell short of standards, he tended to avoid direct confrontation and preferred to retain them. Abel's approach differs significantly. According to reports citing people familiar with the matter, he is not hesitant to take necessary actions to improve operations, including dismissing executives when required.
An author of books on Berkshire revealed that about a year ago, he asked Abel whether he would continue Buffett and Munger's practice of being lenient with underperforming subsidiaries. Abel's response was clear: "I wouldn't do that. I believe in autonomy, I believe in decentralization. But if there are laggards, I will call them out directly."
Vicki Hollub, CEO of Occidental Petroleum, in which Berkshire holds a significant stake, has observed this firsthand. She described Abel as someone who "likes to be involved, will be more hands-on, diving into business details," while also calling him a "tough negotiator, but honest and fair."
Buffett himself has signaled to both internal and external parties that Abel is now the primary decision-maker. When business leaders write to Buffett seeking deal opportunities, Buffett responds but forwards the original correspondence and his reply directly to Abel.
Zero Tolerance for Underperforming Subsidiaries
In managing wholly-owned subsidiaries, Abel also demonstrates a different approach from Buffett's. Berkshire has rarely sold its fully-owned subsidiaries historically, with only two precedents: the sale of the newspaper business in 2020 and the closure of the textile operation in 1985. However, if subsidiaries fail to meet expectations, divestment remains a possibility.
Regarding core operations, Abel continues to invest substantial time visiting subsidiary management, particularly at BNSF Railway and Berkshire Hathaway Energy, the latter being the business Abel himself led as CEO for many years. He has also spent the past year deeply studying Berkshire's insurance operations and maintains close communication with key insurance figure Ajit Jain, who is expected to continue leading the insurance business, for which a succession plan is already in place.
Operationally, Abel commutes several days a week from his home in Des Moines, Iowa, driving two hours to the Omaha office. The rest of his time is spent frequently traveling on Berkshire's NetJets aircraft to visit the management of various portfolio companies on-site. Reports indicate he has no immediate plans to relocate to Omaha, at least until his son graduates from high school. Reflecting on his first 100 days, Abel stated, "If I look back on my first hundred days, it's that the focus on operational excellence has never diminished."
Clarifying "Core" vs. "Non-Core" Holdings in the Investment Portfolio
Regarding investment strategy, Abel is reviewing and restructuring the equity portfolio accumulated during the Buffett era. In his first annual letter to shareholders dated February 28, Abel explicitly identified Apple, American Express, Coca-Cola, and Moody's as "core" holdings. These four stocks collectively account for over half of Berkshire's investment portfolio and were acquired at very low cost.
Bank of America and Chevron were not listed as core holdings. Data shows that over the past 18 months, Berkshire has reduced its Bank of America stake by approximately half to 517 million shares, while the Chevron position is valued at around $20 billion. Abel mentioned in the letter that Berkshire holds "meaningful positions" in a "few other companies," where capital allocation will be "more dynamic," and these positions could potentially be elevated to core status in the future.
On personnel matters, Abel has liquidated stocks managed by Todd Combs, who recently left to join JPMorgan Chase. Combs was one of two investment managers previously recruited by Buffett. Reports citing informed sources suggest Abel is unlikely to recruit additional help for managing the portfolio and will personally lead equity investment decisions.
In his annual letter, Abel reaffirmed Berkshire's commitment to a "concentrated holdings" investment style. He also restarted the share buyback program, which had been paused since 2024, and deepened Berkshire's presence in the Japanese market through the acquisition of a stake in a Japanese insurance company.
The Ultimate Test: Deploying the $373.1 Billion Cash Hoard
For many Berkshire shareholders, Abel's true test lies in the company's unprecedented cash reserves. Berkshire currently holds a record $373.1 billion in cash and equivalents. The core standard by which the market will ultimately judge Abel is his ability to decisively convert this capital into major acquisitions during an economic downturn.
Chris Bloomstran, Chief Investment Officer of Semper Augustus Investments, a long-term Berkshire shareholder, acknowledged: "I can't judge how good he is until we go through the next deep recession. The requirement for Greg from shareholders should be: You have to be willing to put the $300 billion to work. The expectation is that he will do that and be more proactive than Warren was in his later years."
This sentiment, to some extent, reflects the collective mindset of Berkshire's shareholder base: there is trust in Abel, but this trust requires time and tangible results to be fully validated.
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