Berkshire Hathaway’s BRK.B Surges to 35th in Market Activity as Greg Abel Steers Post-Buffett Era

Market Snapshot

Berkshire Hathaway B (BRK.B) edged higher by 0.45% on February 27, 2026, as trading volume surged 38.61% from the previous day to $3.18 billion, ranking it 35th in market activity. The stock’s modest gain occurred ahead of the company’s first quarterly earnings report since Warren Buffett stepped down as CEO, with investors closely monitoring the transition under new leader Greg Abel.

Key Drivers

The market’s focus on Berkshire Hathaway has shifted to Greg Abel’s leadership amid a pivotal transition period. With Warren Buffett’s departure from the CEO role, Abel’s first annual shareholder letter, to be released alongside Q4 results on February 28, will scrutinized for insights into his strategic vision. Investors are particularly interested in how Abel will manage the company’s $381.7 billion cash reserve, a figure that has drawn speculation about potential dividends, share buybacks, or new investments. Analysts note that Buffett’s legacy has long defined Berkshire’s identity, and Abel’s ability to maintain the company’s culture while adapting to modern market dynamics will be critical in retaining investor confidence.

The insurance segment remains a key performance indicator for Berkshire. In Q3 2025, the conglomerate reported a 34% year-over-year increase in operating earnings, driven by strong underwriting profits. While Q4 revenue is expected to decline slightly to $92.91 billion from $94.92 billion in 2024, the market will assess whether the insurance division continues to deliver robust results. This segment’s performance is crucial, as it has historically offset volatility in other parts of the business, including underperforming investments in the top 10 portfolio holdings.

Berkshire’s stock underperformance relative to the S&P 500 in 2025—11.4% versus 16.6%—has raised concerns. Of the top 10 holdings at year-end, only American Express, Bank of America, and Alphabet outperformed the benchmark. This drag highlights the challenge of maintaining growth in a diversified portfolio. Abel’s letter may address strategies to revitalize underperforming assets or adjust the investment approach, which has seen the company act as a net seller of stocks for 12 consecutive quarters. The lack of buybacks since 2021 and the absence of a dividend policy have also drawn attention, with some analysts suggesting these factors contribute to the stock’s lower valuation multiple.

The transition of leadership has already impacted market sentiment. Since Buffett’s announcement in May 2025, BRK.B has fallen 8% while the S&P 500 rose 22%, reflecting uncertainty about the post-Buffett era. Abel’s emphasis on operational efficiency and his deep understanding of Berkshire’s businesses—gained over two decades as vice chairman—have been cited as strengths. However, the absence of Buffett’s charismatic influence and his unique shareholder communication style has left a void. The annual letter, a cornerstone of Berkshire’s transparency, will be pivotal in establishing Abel’s voice and addressing questions about the company’s long-term direction.

Investors are also watching for signals on the Kraft Heinz stake, which Buffett has described as a “biggest blunder.” While Abel previously indicated no immediate plans to divest the 27.5% holding, Kraft Heinz’s recent decision to halt its spinoff plan adds complexity. The conglomerate’s exposure to other sectors, such as railroads and energy, may also be discussed, given its mixed operating results and large investment portfolio. Analysts caution that the market will react strongly to any deviations from Buffett’s risk-averse strategy, particularly in deploying the cash hoard or reshaping the portfolio.

The broader economic context further complicates the outlook. With interest rates stabilizing and inflation easing, Abel’s letter could offer macroeconomic insights that align with Berkshire’s business interests. For example, the insurance segment’s profitability is closely tied to interest rate environments, while the railroad and energy divisions face cyclical challenges. By addressing these factors, Abel may reassure investors that Berkshire remains agile in navigating macroeconomic shifts. Ultimately, the success of his leadership will hinge on balancing continuity with innovation—a delicate task in a company synonymous with Buffett’s indelible mark.