With the 2026 Berkshire Hathaway Annual Shareholders Meeting on the horizon, the company is navigating a new chapter under its chief executive.
Last December, on a bleak afternoon just days before Greg Abel was set to take the reins of Berkshire Hathaway, he fielded questions from employees at the company's weekly lunch gathering. One employee inquired if he planned to relocate the company from its longtime headquarters in Omaha, Nebraska, a home base it had occupied for decades under Warren Buffett's leadership. Abel gave a definitive answer: the company would not be moving.
During Buffett's long tenure, such a question would have been almost unthinkable. But at that moment, many employees understood: change had arrived.
Abel has promoted several longtime deputies who worked with him overseeing Berkshire's vast non-insurance operations. His annual salary is higher than Buffett's was, and he has committed to using the majority of his compensation to purchase more Berkshire stock. He has also restarted the company's share repurchase program, which had been paused since 2024. Furthermore, he has expanded Berkshire's investments in Japan, acquiring a stake in a local insurance company.
According to people familiar with the matter, Abel's approach is more hands-on compared to Buffett's detached style. He is examining Berkshire's diverse businesses and equity portfolio with a fresh, more critical perspective. For companies, stock holdings, or executives that fail to meet his standards, he is prepared to implement stringent control measures.
In an interview, Abel acknowledged the differences between himself and Buffett and his late partner, Charlie Munger. "There are differences between Warren, Charlie, and me, primarily in style and how we approach things," he said, while adding, "The core values that the company was built on remain unchanged."
The 63-year-old Abel succeeded Buffett as CEO in January. He has pledged to uphold Berkshire's unique foundations: preserving its culture and values, maintaining the strength of its core insurance operations, retaining its decentralized conglomerate structure, and having the CEO personally manage the stock portfolio.
On multiple weekdays, Abel commutes two hours from his home in Des Moines, Iowa, to the office in Omaha. People familiar with his plans say he has no immediate intention to relocate to Omaha, likely waiting until his son graduates from high school in a few years before considering a move.
Abel often travels across multiple states in a single day. He spends much of his workweek aboard NetJets, Berkshire's private jet subsidiary, crisscrossing the country to meet with the leaders of Berkshire's various operating units.
In his first annual letter to shareholders, published on February 28, Abel clearly delineated Berkshire's core stockholdings, which include Apple, American Express, Coca-Cola, and Moody's. According to sources within Berkshire's investment circle, Abel has sold off a portfolio of stocks previously managed by Todd Combs. Combs, one of two investment managers recruited by Buffett years ago, recently left to join JPMorgan Chase. The same sources indicate Abel has no plans to hire a replacement for that investment role.
Berkshire employees and shareholders had known Abel was the chosen successor since 2021, when Munger inadvertently revealed it at the annual meeting in Omaha. However, the specific timing of the transition only became clear after Munger's passing in November 2023 and, finally, in May of this year, when the 95-year-old Buffett publicly announced from the same stage that he would step down by year-end. "The real transition started then," Abel stated.
The other questions at that December lunch in Omaha were lighter. One employee even asked Abel, an avid Canadian hockey fan, if the condition of local indoor ice rinks would improve. By the end of the lunch, the food on Abel's plate had gone cold, largely untouched.
Over the past year, Abel has focused intensely on Berkshire's insurance operations, meeting frequently with Ajit Jain, the key figure leading that segment. Jain will continue to run the insurance business, for which a succession plan is already in place. Buffett said in an interview, "He'll stay as long as he's able."
The new CEO is also prioritizing communication with the managers of Berkshire's subsidiaries, paying particular attention to BNSF Railway and Berkshire Hathaway Energy, where he served as CEO for many years. "Looking back on my first hundred days, one thing I've focused on is relentless operational execution," Abel remarked.
Buffett has made it clear, both inside and outside Berkshire, that Abel is now in charge. When business leaders write to Buffett seeking deals, Buffett responds personally but also forwards the correspondence to Abel. People familiar with the process say Abel's inaugural shareholder letter was reviewed by Buffett before publication, but Buffett made only minor edits, essentially giving his full endorsement.
Hailing from Canada's prairie provinces, Abel combines a Buffett-like Midwestern affability with a pragmatic, even-keeled demeanor. During the Olympics, he cheers for both the Canadian men's and the American women's hockey teams, deliberately maintaining neutrality. He still coaches his son's hockey team, making a point to high-five every player after games.
Those familiar with both men say the most significant difference is that Abel does not shy away from conflict. Buffett's management style was to rarely replace underperforming executives, preferring to avoid personnel confrontations. Abel, in contrast, is willing to take whatever steps are necessary to improve a business, including making personnel changes.
While Abel has reaffirmed Berkshire's "hold forever" investment philosophy, people familiar with his thinking say that selling an asset is not off the table if a business fails to meet expectations. Berkshire has rarely sold whole subsidiaries, with exceptions like the divestment of its newspaper assets in 2020 and the closure of its original textile business in 1985.
Lawrence Cunningham, author of several books on Berkshire, recalled asking Abel about a year ago if he would continue Buffett and Munger's tradition of tolerating lagging businesses. Cunningham relayed Abel's response: "I won't do that. I believe in autonomy and decentralization. But for businesses that are underperforming, I will call it out."
People associated with Berkshire's operating companies note that Buffett typically intervened only when performance was severely lacking, whereas Abel's style is more proactive, setting clear expectations and managing performance upfront.
Vicki Hollub, CEO of Occidental Petroleum, in which Berkshire holds a significant stake, commented, "Greg is naturally hands-on, so he will be more involved in the details. He's a tough negotiator but is straightforward and fair."
In his annual letter, Abel stated that Berkshire would continue its strategy of concentrated stock ownership, listing the major core holdings but notably excluding Bank of America and Chevron. Sources indicate the company does not classify these two holdings as core assets.
For many shareholders, the ultimate test of Abel's leadership will be his ability to deploy Berkshire's record $373.1 billion cash pile into major acquisitions.
Chris Bloomstran, chief investment officer of Semper Augustus Investments, a long-term Berkshire shareholder, said, "The real judgment for me will come during the next deep recession. The mandate for Greg from shareholders is clear: you have to put this $300-plus billion to work. The expectation is that he will be more aggressive on the acquisition front than Buffett was in his later years."
Comments