It finally happened.
At the end of 2025, Warren Buffett officially stepped down as the CEO of Berkshire Hathaway. For sixty years, the "Oracle of Omaha" was the face of the company, the primary capital allocator, and the person thousands of people flocked to see every May in Nebraska. Now, as we move through January 2026, Greg Abel is officially the man at the helm.
But if you think Berkshire is suddenly a different company because a 95-year-old legend decided to take a back seat as Chairman, you're probably missing the point.
Honestly, the transition has been the most choreographed hand-off in corporate history. It’s not like Abel walked into the office on January 1st and had to ask where the files were. He’s been running the non-insurance operations for years. He’s already deeply embedded in the culture.
The $382 Billion Elephant in the Room
One thing that hasn't changed is the pile of cash.
Actually, "pile" is an understatement. As of the start of 2026, Berkshire Hathaway is sitting on a staggering $382 billion in cash, cash equivalents, and short-term Treasuries. To put that in perspective, that is more than the market cap of companies like Spotify and Adobe combined.
Why so much?
Buffett’s parting gift was a masterclass in patience. Throughout 2024 and 2025, he was a net seller of stocks. He famously trimmed massive chunks of the Apple position—selling roughly 115 million shares in early 2025 alone—and significantly reduced the stake in Bank of America.
People love to speculate that he was "predicting a crash."
Maybe. But it’s more likely he just didn't see anything worth buying. Valuation matters at Berkshire. It's the core of the whole thing. If the market is expensive, they sit on their hands. They don’t mind looking "boring" while everyone else is chasing the latest AI hype cycle.
What the Portfolio Looks Like Now
Despite the selling, the equity portfolio still has some heavy hitters. It’s not a secret recipe; it’s just a concentrated bet on things people use every day.
- Apple: Still the king. Even after the trims, it’s about 21% of the portfolio.
- American Express: A business Buffett says he'll own "indefinitely."
- Coca-Cola: The ultimate long-term hold, with a yield-on-cost that is basically a money printer at this point.
- Chevron and Occidental Petroleum: A massive bet on traditional energy that hasn't wavered.
Interestingly, there have been some new additions lately. In late 2025, Berkshire initiated a position in UnitedHealth (UNH) and added to Nucor (NUE). It shows that even in a transition period, the "Berkshire way" is to look for cash-flow-heavy, durable businesses that might be temporarily out of favor.
Is Greg Abel the Next Buffett?
No. And he doesn't need to be.
Greg Abel is an operator. He’s a "first in, last out" kind of guy who built Berkshire Hathaway Energy into a powerhouse. While Buffett was the philosopher-king of investing, Abel is the guy who knows how the gears of a utility company or a railroad actually turn.
There’s a shift happening. Under Abel, the focus might lean more toward the wholly-owned subsidiaries—like BNSF Railway and GEICO—rather than just picking stocks.
One big question for 2026 is whether the company will finally give in and pay a dividend. Shareholders are starting to get restless. When you have nearly $400 billion in the bank and your legendary stock-picker has retired from the CEO role, the "buy and hold" crowd starts wondering if they should just get some of that cash back directly.
What You Can Actually Do With This Information
If you’re looking at Berkshire Hathaway and Warren Buffett as a blueprint for your own money, don't try to copy their exact trades. You don't have their "float"—the insurance premiums they get to invest for free.
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Instead, look at the discipline.
The most important takeaway for 2026 isn't a specific stock tip. It's the fact that the wealthiest investor in history spent the last two years of his career selling more than he bought. He was comfortable doing nothing.
Succession is hard, but Berkshire is built to outlast its founder. The culture of decentralization—letting great managers run their businesses without interference—is the real "secret sauce."
Actionable Next Steps
- Check your cash reserves. You don't need $382 billion, but having a "dry powder" fund allows you to be greedy when others are fearful, just like the rule says.
- Review your concentration. Berkshire has 65% of its equity value in just five stocks. If you really believe in a company, you don't need to own 50 other things just to feel "diversified."
- Focus on the Moat. Before buying anything this year, ask if the company has a "durable competitive advantage." If you can't explain why a competitor can't just steal their customers tomorrow, it’s not a Buffett-style business.
- Watch the 13F filings. The next regulatory filing will be the first one fully under Abel’s tenure. Watch for shifts into more industrial or healthcare names, which would signal a departure from the tech-heavy years of the late 2010s.