"Undoubtedly, it was a magnificent run for Buffett, one that's unlikely to ever be matched. And while Abel has some massive shoes to fill, I do think Berkshire Hathaway might be able to get a second wind, so to speak, especially as markets wander into a new era of heftier valuation multiples and a business landscape that will be forever changed by artificial intelligence (AI)."
"It's one thing to anticipate Buffett's departure from the CEO's office, but it's another when the time finally comes. Though Buffett will still be ready to chime in once opportunities arise (his investing expertise in tough markets is arguably a top reason why shares of Berkshire Hathaway should retain some of their Buffett premium), one can't really fault long-time shareholders for selling before Buffett hands things over to Abel."
Warren Buffett is leaving the CEO role at Berkshire Hathaway with Greg Abel set to succeed him. The leadership transition could unsettle some investors in the short term and produce volatility as fears of a post-Buffett era prompt sales. Buffett may continue advising on opportunities, supporting some residual Buffett premium. Abel inherits substantial cash, well-performing businesses, and opportunities to enhance sales and margins through AI adoption. Berkshire has shown increased willingness to invest in technology, as evidenced by stakes in Apple and Alphabet. The company could achieve renewed growth if Abel capitalizes on cash resources, operational strength, and AI-driven value.
Read at 24/7 Wall St.
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