After nearly six decades under Warren Buffett’s leadership, Berkshire Hathaway has entered a new chapter with Greg Abel at the helm. Abel became CEO at the end of December 2025 and recently penned his first annual letter to shareholders. The message outlined his priorities while honoring the company’s legendary past and its distinctive culture.
Abel wasted no time addressing the elephant in the room: Berkshire’s massive cash pile exceeding $380 billion as of September 2025. While that sum might seem like a problem begging for a solution, Abel emphasized patience and discipline. He prefers owning productive businesses over parking money in U.S. Treasuries, yet refuses to rush into mediocre deals just to put capital to work. For Abel, maintaining financial resilience comes first.
Patient capital beats forced deployment—financial resilience trumps action for action’s sake when managing hundreds of billions.
The new CEO outlined clear investment criteria that echo Buffett’s philosophy but with Abel’s own voice. He seeks businesses that earn solid returns on their actual capital, run by honest and capable managers, and available at reasonable prices. Berkshire will act quickly when opportunities arise and concentrate capital in high-conviction ideas rather than spreading resources thin.
Abel showcased this approach with Berkshire’s acquisition of Bell Laboratories, a family-owned rodent control business. The purchase might seem unglamorous compared to flashy tech deals, but it checks all the boxes: it serves a persistent need, generates reliable cash flows, and came at a sensible price. Sometimes the best investments solve simple problems that never disappear.
Looking forward, Abel plans to build on Berkshire’s insurance foundation, which has deployed capital successfully since the 1967 purchase of National Indemnity. He encourages subsidiary companies to reinvest profits into growth or buy back their own stock when appropriate. The long-term view matters more than quarterly performance.
Abel’s letter demonstrates continuity with Buffett’s principles while establishing his own leadership style. He emphasized maintaining Berkshire’s owner-minded culture, avoiding businesses that harm society, and staying nimble despite the company’s enormous size. The handover guarantees that Berkshire’s foundational values continue guiding decisions, even with new hands on the wheel. Central banks set policy rates that shape borrowing costs and financial conditions, a macro factor that can influence Berkshire’s investment timing and capital deployment decisions, as seen when policy interest rates rise or fall.
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