Warren Buffett has finally done it. On January 1, 2026, the man who practically invented modern value investing officially stepped down as CEO of Berkshire Hathaway. It’s the end of an era. Or is it? Honestly, the market seems a bit spooked.
If you look at Berkshire Hathaway Inc stock lately, there’s this weird tension. The share price is hovering around $495 for the Class B (BRK.B) shares, but the real story isn't just the price—it's the massive mountain of cash Greg Abel just inherited. We are talking about $381.7 billion. That’s not a typo. It’s a war chest so big it could literally buy Disney or Netflix in cash and still have enough left over to pick up a few airlines for fun.
People keep asking: "Is Berkshire still a buy without the Oracle?"
The Succession Discount: Life After Buffett
There’s a new term floating around Wall Street: the "succession discount." Basically, investors are nervous. Since Buffett announced his retirement back in May 2025, the stock has lagged the S&P 500 by a noticeable margin. While the broader market was up 20% last year, Berkshire only managed about 9%.
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It’s kinda fascinating because the actual business is doing great. GEICO is printing money again with a combined ratio around 84%, and the insurance side just posted a $2.4 billion underwriting profit. But the market isn't trading on the insurance numbers right now. It’s trading on the "Warren factor."
Greg Abel, the new CEO, is a total operations guy. He knows energy. He knows railroads. But he isn't known for being a "stock picker." To make matters more complicated, Todd Combs—one of the two guys Buffett hired to manage the portfolio—just left to run a group at JPMorgan. That leaves Ted Weschler as the lone survivor in the investment office.
What most people get wrong about the portfolio
You've probably heard that Buffett "sold Apple." He didn't just trim it; he absolutely slashed it. Berkshire sold off nearly 75% of its Apple stake over the last couple of years. Why?
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It wasn't because the iPhone stopped being cool. Honestly, it was likely about taxes and valuation. Buffett saw the S&P 500 trading at 39 times earnings (the Shiller CAPE ratio) and decided the party was getting too expensive. By sitting on $381 billion in T-bills, he was effectively betting against the market.
Now, that cash is earning about 5.4% in Treasuries. That’s $20 billion a year in interest just for doing nothing. It’s the ultimate "defensive" move.
Why Berkshire Hathaway Inc stock remains a "Fortress"
If you’re holding Berkshire Hathaway Inc stock today, you aren't looking for a 50% gain in six months. You’re looking for a bunker. The company is basically a sovereign wealth fund disguised as a conglomerate.
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- The Float: Berkshire has $176 billion in insurance float. This is money that doesn't belong to them but that they get to invest for their own benefit until claims are paid.
- Diverse Income: Even if the stock market crashes, people still need electricity (Berkshire Hathaway Energy) and they still need to ship freight (BNSF Railway).
- The Buyback Pause: Here is a detail that caught some people off guard. Berkshire actually stopped buying back its own stock in late 2025. When Buffett stops buying his own stock, it usually means he thinks even his own company is a bit pricey.
Will we finally see a dividend?
This is the billion-dollar question for 2026. Buffett hated dividends. He thought he could always do something better with the money than you could. But with Greg Abel at the helm and a cash pile that’s growing faster than they can spend it, the pressure is on.
Analysts at places like Morningstar and UBS are starting to whisper that 2026 could be the year Berkshire finally initiates a dividend. If they paid out even a quarter of their operating profit, it would be one of the largest dividends in the world.
The "Big Deal" is still out there
The real catalyst for Berkshire Hathaway Inc stock isn't a dividend, though. It's the "elephant hunt." With nearly $400 billion in dry powder, the company is perfectly positioned for a market correction.
If the 2026 economy hits a bump, Abel has the power to step in and save a failing giant, just like Buffett did with Goldman Sachs in 2008. That’s the Berkshire playbook: wait for everyone else to panic, then move in with the checkbook.
Actionable steps for investors
- Watch the Valuation: If the stock drops toward its "book value" (or even 1.3x book), it’s traditionally been a screaming buy.
- Don't Panic Over the CEO Change: Greg Abel has been running the non-insurance businesses for years. The "engine" of the company is already in his hands.
- Monitor 13F Filings: Since Ted Weschler is now the primary steward of the $300 billion equity portfolio, watch for shifts in the "top five" holdings (Apple, American Express, Bank of America, Coca-Cola, and Chevron).
- Assess Your Yield Needs: If you need immediate income, Berkshire still isn't the play yet—at least not until they officially announce a change in dividend policy.
At the end of the day, owning this stock is a bet on the long-term resilience of the American economy. It’s slow. It’s boring. It’s incredibly liquid. And in a world where everyone is chasing AI hype, there is something kida refreshing about a company that’s happy to sit on a mountain of cash and wait for the perfect pitch.