<div id="readability-page-1">CEO Warren Buffett purchased a majority stake in Berkshire Hathaway (BRK.A 0.77%) (BRK.B 0.62%) in May 1965. Using the company as the namesake and a foundational element for his new investment, Buffett went on to deliver one of the most incredible investing success stories in history. Notably, Buffett will retire from the CEO role at the end of this year. At age 95, it's fair to say that he's earned his place as one of history's greatest investors. While a major leadership change is on the horizon, there's a good reason why Berkshire still stands out as one of the best stocks in the financials sector to buy right now. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzAxOTMvYnVmZmV0dDItdG1mLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzAxOTMvYnVmZmV0dDItdG1mLmpwZyZ3PTcwMA"/>Image source: Getty Images. </div> <h2>Berkshire has impressive resources to work with</h2> At the beginning of 2026, Buffett will be succeeded as CEO by Greg Abel -- the current CEO of Berkshire Hathaway Energy and vice chairman of non-insurance operations at Berkshire. What's more, portfolio managers Ted Weschler and Todd Combs will be staying on as stock pickers for the company. While Buffett is stepping back from the CEO role, he will stay on as the chairman of the company's board of directors. So even though Berkshire's most high-profile leader will be taking a less active role, a strong succession plan and leadership team are in place. With a gain of 10.1% this year, Berkshire stock has slightly underperformed the S&amp;P 500 index's total return level of 10.6% over the period. Meanwhile, the Nasdaq Composite has posted a total return of 12.4%. Berkshire's underperformance is partially rooted in the defensive positioning the company has adopted amid recent market conditions. While companies in the tech and financials sectors have generally been outperforming this year, Berkshire has reduced its exposure to these categories in favor of building up a massive cash pile. As of the company's latest public disclosure, Berkshire carried a cash and short-term equivalents position of approximately $344 billion. Berkshire's massive cash pile and time-tested team of leaders make it a smart defensive play in today's market. </div>

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Berkshire Hathaway (BRK.B) is highlighted as a top financial stock to buy, despite CEO Warren Buffett's upcoming retirement. Buffett, who has led the company since 1965, will be succeeded by Greg Abel in 2026, with a strong leadership team remaining in place. Although Berkshire's stock has gained 10.1% this year, it has slightly underperformed the S&P 500. The company has adopted a defensive strategy, building a cash position of approximately $344 billion, making it a smart investment in current market conditions.

- Warren Buffett purchased a majority stake in Berkshire Hathaway in May 1965 and will retire as CEO at the end of this year, remaining as chairman.  
- Greg Abel will succeed Buffett as CEO, supported by portfolio managers Ted Weschler and Todd Combs, ensuring a strong leadership transition.  
- Despite slightly underperforming the S&P 500 this year, Berkshire's substantial cash reserves of approximately $344 billion position it as a smart defensive investment in current market conditions.

1 Reason Berkshire Hathaway (BRK.B) Is One of the Best Financial Stocks You Can Buy Today