The era of Berkshire Abel officially begins, with a nearly 2% drop during the first day's trading

Berkshire Hathaway's stock price fell on Friday as investors digested the official end of Warren Buffett's 60-year tenure as CEO and the significant transition to his successor, Greg Abel, marking the beginning of a new era. On the first trading day of 2026, which was also Abel's first day as CEO, Berkshire's stock opened lower, dropping nearly 2% during the day and closing down 1.1%, underperforming the broader U.S. stock market. Previously, Buffett had completed the formal handover of his role, signaling the end of one of the most legendary leadership periods in the company's history. Berkshire Hathaway rose 10.9% for the entire year of 2025, although it lagged behind the S&P 500's 16.4% increase, marking the 10th consecutive year of positive returns. The 95-year-old Buffett remains chairman and has continually sought to reassure shareholders that Berkshire's future extends far beyond his tenure. In a special interview with CNBC, Buffett stated, "I believe the likelihood of it existing in the next 100 years is greater than any company I can think of." As of the end of September last year, Berkshire's cash holdings reached a record $381.6 billion, following a prolonged period of net stock sales by the company. Buffett indicated that Abel would have the final say on capital allocation decisions. Buffett said: "The decision-maker will be Greg Abel. I can't imagine that what he can accomplish in a week will be less than what I can accomplish in a month. I would rather have Greg manage my money than give it to any top investment advisor or top CEO in the U.S." Since Buffett announced his retirement last May, Berkshire's stock performance has lagged behind the market, with some investors assessing whether Abel can manage the vast operational business and stock investment portfolio at the same level while continuing to support its premium valuation. Buffett leaves behind an unmatched performance record. Since taking over Berkshire in the mid-1960s, he transformed a struggling textile company into a compounding growth giant. From 1964 to 2024, Berkshire achieved an annualized compound return of 19.9%, nearly double the S&P 500's 10.4%, with a cumulative return exceeding 5.5 million percent