Is Berkshire Hathaway Still a Buy After Buffett's Retirement?

The transition of power at Berkshire Hathaway from Warren Buffett to Greg Abel marks a pivotal moment in the history of one of the world's most iconic investment vehicles. As the "Oracle of Omaha" steps down as CEO, investors are left to grapple with a critical question: Can Greg Abel sustain Berkshire's legacy of long-term value creation in a post-Buffett era? This analysis evaluates Abel's leadership style, the company's financial performance, and strategic initiatives to determine whether Berkshire remains a compelling buy.

Greg Abel: A Steady Hand in a New Era

Greg Abel's leadership style is characterized by operational rigor and a disciplined approach to capital allocation, traits that align closely with Warren Buffett's foundational principles. Abel, who has overseen Berkshire's non-insurance operations for over two decades, has demonstrated a knack for managing complex subsidiaries like BNSF Railway and Berkshire Hathaway Energy. His early moves as CEO-such as appointing Adam Johnson to lead consumer and retail businesses and restructuring underperforming units like Pilot-signal a commitment to accountability and operational efficiency.

Unlike Buffett's famously hands-off approach, Abel has adopted a more structured leadership model while preserving the decentralized autonomy of subsidiary managers according to ABC News. This balance between oversight and trust is critical for maintaining Berkshire's culture of innovation and long-term thinking. As stated by a report from Fintool, Abel's leadership reshuffling reflects a "more structured approach while preserving Berkshire's culture of autonomy for subsidiary leaders".

Financial Performance and Capital Allocation: Navigating a $381 Billion Cash Pile

Berkshire's financial position remains robust, with over $381 billion in cash and equivalents as of late 2025. However, deploying this capital effectively in a market dominated by high-growth tech stocks presents a significant challenge. Abel's early focus has been on maintaining Buffett's disciplined investment philosophy, though analysts speculate he may explore new opportunities in technology and AI if valuations are attractive.

A key indicator of Abel's capital allocation strategy is Berkshire's recent $4.3 billion investment in Alphabet shares during Q3 2025. This move signals a shift toward embracing AI-driven companies, a sector Buffett historically avoided. While Abel has not yet announced a dividend-a first for Berkshire since 1967-investors are watching for potential share repurchases, which would indicate his belief in the stock's undervaluation.

Expert Opinions: A Mixed Outlook

The investment community remains divided on Berkshire's future under Abel. On one hand, experts praise his operational expertise and alignment with Buffett's principles. As noted in a CNBC analysis, Abel's deep understanding of business fundamentals positions him to manage Berkshire's vast resources effectively. On the other hand, some analysts express caution. A report from Seeking Alpha highlights that Berkshire's shares underperformed the S&P 500 in 2025, raising questions about its adaptability in a tech-driven market.

Despite these concerns, Berkshire's institutional strengths provide a solid foundation for long-term value creation. As stated by The Fool, the company's "core culture of patient, long-term investing will persist under Abel", even as it navigates a rapidly evolving economic landscape.

Strategic Moves in Technology and AI: A New Frontier

Abel's leadership has already shown a willingness to pivot toward high-growth sectors. Berkshire's existing stakes in Amazon and Alphabet-both of which have significant AI exposure-suggest a strategic alignment with the future of technology according to Nasdaq analysis. Analysts predict that Abel may further increase investments in these companies or explore new AI-related opportunities, provided they meet Buffett's criteria of "buying great companies at good prices".

For example, Amazon's AWS and advertising segments have demonstrated strong growth and operating margins, making it a compelling candidate for further investment. Similarly, Alphabet's dominance in AI and cloud computing positions it as a natural fit for Berkshire's portfolio. These moves indicate that Abel is not merely preserving Buffett's legacy but actively adapting it to new realities.

Conclusion: A Buy with Caution

Berkshire Hathaway's post-Buffett journey under Greg Abel is a study in continuity and evolution. While the stock's initial dip in early 2026 reflected investor uncertainty, the formation of a "golden cross" technical pattern suggests long-term optimism. Abel's operational acumen, combined with his strategic openness to tech and AI investments, strengthens the case for Berkshire as a buy.

However, risks remain. The company's size and traditional value orientation may struggle to keep pace with the rapid innovation of the tech sector. Investors must weigh these challenges against Berkshire's institutional strengths and Abel's proven ability to execute Buffett's vision. For those with a long-term horizon, the answer leans toward "yes"-but with the caveat that patience and a focus on value, not hype, will remain paramount.