The question hanging over Berkshire Hathaway feels a bit like wondering what happens to a beloved family restaurant when the famous chef finally hangs up their apron. Warren Buffett has been the face of this investment giant for decades, but the company was actually built to survive long after he steps away.
Greg Abel, the 63-year-old executive who will take over, has been quietly preparing for this moment since 2018. He has worked at Berkshire for over two decades, climbing through the energy and utility divisions. While Abel may not have Buffett’s celebrity status, he brings deep knowledge of how the company actually runs day-to-day operations.
Abel’s two decades at Berkshire and deep operational knowledge position him well to lead beyond Buffett’s celebrity shadow.
The genius of Berkshire’s design lies in its structure, not just its leadership. Each subsidiary operates like its own separate business with its own managers. This means the company does not depend on decisions from headquarters for every little thing. Think of it like a collection of successful stores rather than one giant store that needs constant supervision. With an effective data management approach, Berkshire ensures information accuracy and accessibility across its diverse portfolio of companies.
The numbers tell a reassuring story too. Even without Buffett at the helm, Berkshire posted an 11% increase in book value during the second quarter of 2025. The company sits on a massive pile of cash reserves worth $345 billion, giving it plenty of flexibility to weather storms and make smart investments. The company recently demonstrated strong performance with operating profit increasing by 34% in Q3. One significant change investors might see is the introduction of dividend payments, which haven’t been distributed since 1967 as Buffett preferred reinvesting profits back into the business.
Of course, some analysts worry about losing the “Buffett premium” that investors have long valued. The stock price might wobble as markets adjust to new leadership, which is pretty normal when iconic leaders step down from major companies.
Berkshire’s succession plan has been in the works for over ten years, which shows serious preparation rather than last-minute scrambling. The board and executives understand Buffett’s principles and have practiced them for years. Abel is expected to maintain the same long-term, shareholder-focused approach that made Berkshire successful.
While uncertainty always exists during leadership transitions, Berkshire appears well-positioned to thrive. The company’s diversified portfolio, strong financial position, and decentralized structure provide a solid foundation that extends far beyond any single person, even one as legendary as Warren Buffett.
