Greg Abel and the Future of Berkshire Hathaway: 3 Strategic Buys in 2026

The leadership transition at Berkshire Hathaway, marked by Greg Abel's assumption of the CEO role on January 1, 2026, represents a pivotal moment for the $1.1 trillion conglomerate. With Warren Buffett stepping back from day-to-day operations, Abel inherits a company with $381.6 billion in cash reserves and a mandate to deploy capital in ways that align with Buffett's long-term value creation ethos while adapting to a rapidly evolving economic landscape according to reports. As the market watches closely, three strategic sectors-energy, infrastructure, and technology-emerge as prime candidates for Abel's capital allocation, reflecting both his operational expertise and the company's evolving priorities.

1. Energy: Leveraging Abel's Expertise in a Shifting Sector

Greg Abel's decade-long stewardship of Berkshire Hathaway Energy has cemented his reputation as a master of energy infrastructure. Under his leadership, the division expanded through strategic acquisitions, including MidAmerican Energy and a significant stake in Occidental Petroleum. With global energy markets in flux-driven by decarbonization pressures and surging demand for renewables-Abel is poised to capitalize on his deep sector knowledge.

A potential target lies in Occidental Petroleum, a company Berkshire has already invested in and which is restructuring its chemicals business. Occidental's focus on low-cost oil production and its pivot toward carbon capture technologies align with Abel's emphasis on sustainable, capital-efficient operations. Additionally, companies like Venture Global LNG and Devon Energy, which operate in key U.S. shale plays and midstream infrastructure, could attract Berkshire's attention given their strong cash flows and strategic positioning in the energy transition. For Abel, these investments would not only leverage his operational acumen but also diversify Berkshire's energy portfolio in a sector ripe for consolidation.

2. Infrastructure: Building a Legacy of Long-Term Value

Infrastructure has long been a cornerstone of Berkshire's strategy, and Abel's tenure as CEO is expected to accelerate investments in this area. With $381.7 billion in cash on hand, the company has the liquidity to pursue large-scale projects or acquire undervalued assets in sectors such as transportation, utilities, and renewable energy according to analysis.

Abel's track record in managing energy infrastructure-such as the development of wind and solar projects under Berkshire Hathaway Energy-suggests a preference for capital-intensive, long-duration investments. Potential targets could include midstream energy companies or firms involved in grid modernization, which are critical to supporting the U.S. shift toward clean energy. For instance, companies with expertise in hydrogen production or battery storage could align with both regulatory trends and Berkshire's appetite for durable cash flows. By doubling down on infrastructure, Abel would reinforce Berkshire's reputation as a stabilizer in volatile markets while generating steady returns for shareholders.

3. Technology: A Buffett-Style Pivot to AI and Cloud Computing

Warren Buffett's historical aversion to high-valuation tech stocks has been well documented, but Abel's leadership signals a potential shift. In late 2025, Berkshire made a significant new investment in Alphabet, a move interpreted as a strategic pivot toward artificial intelligence. Alphabet's dominance in AI-driven tools like Tensor Processing Units (TPUs) and its robust search business position it as a compelling long-term holding.

Beyond Alphabet, Abel may target undervalued tech companies with strong fundamentals. Meta Platforms, for example, trades at a discount compared to peers like Microsoft and Nvidia, offering a compelling entry point for a disciplined investor like Abel. Similarly, Amazon's AWS division remains a cash cow, and its expanding role in AI and e-commerce could justify a larger stake. By selectively investing in tech firms with durable moats and attractive valuations, Abel would honor Buffett's principles while adapting to the AI-driven economy.

Conclusion: A New Era of Strategic Precision

Greg Abel's leadership marks a transition from Buffett's idiosyncratic, long-term approach to a more institutionalized model of capital deployment. With $380 billion in cash to allocate, the pressure is on to make strategic, high-impact decisions that define Berkshire's next chapter. By focusing on energy, infrastructure, and technology-sectors where Abel's expertise and the company's strengths intersect-Berkshire can navigate the post-Buffett era with confidence. The coming months will test Abel's ability to balance operational efficiency with bold innovation, but his track record and the company's vast resources suggest a future where Berkshire remains a formidable force in global capital markets.