Warren Buffett stepped down as CEO of Berkshire Hathaway on December 31, 2025, after leading for six decades and transforming the company into a $1 trillion conglomerate. Greg Abel became CEO on January 1, 2026, overseeing non-insurance operations as vice chair. Buffett will remain board chair and plans to continue visiting Omaha, but he will “go quiet” and leave decision-making to Abel. Berkshire’s stock is down about 3.2% in 2026 versus roughly 9.6% for the S&P 500, creating an almost 13-point underperformance gap. The lag is attributed mainly to leadership transition uncertainty and weakness in major holdings, especially American Express, down about 20% year to date. Portfolio gains are led by positions Buffett initiated, which are total return winners that also pay dividends and are rated Buy by top firms.
"Warren Buffett stepped down as CEO of Berkshire Hathaway on December 31, 2025, after six decades leading the conglomerate he transformed from a struggling textile mill into a $1 trillion empire. The "Oracle of Omaha" left his successor, Greg Abel, with a very concentrated portfolio: more than 65% of Berkshire's $381 billion portfolio is invested in just six stocks. Abel, who has served as vice chair overseeing non-insurance operations, officially took over as CEO on January 1, 2026."
"At 95 years old, Buffett isn't fully retiring-he will remain board chair and plans to continue coming to the Omaha headquarters as much as before. However, he has stated he will be "going quiet" and leaving all decision-making to Abel. While he is now in charge of Berkshire Hathaway, he added to one of Buffett's top picks in the first quarter in a big way."
"Berkshire Hathaway ( NYSE: BRK-B) stock is down approximately 3.2%, so far in 2026, while the S&P 500 has gained about 9.6%. This leaves Berkshire lagging the broader market by almost 13 percentage points so far this year. This performance gap is significant. The underperformance stems primarily from the leadership transition. Buffett stepped down as CEO at the end of 2025, and this was accompanied by uncertainty about Berkshire's future direction."
"However, the biggest winners in the Berkshire portfolio this year are all positions Buffett put in, some as recently as last year and others decades ago. All the top names in the portfolio that are up the most have been total return winners, as they also pay dividends. Plus, all are rated Buy at top Wall Street firms that we cover."
Read at 24/7 Wall St.
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