Key Points
- Greg Abel has officially become CEO of Berkshire Hathaway, succeeding Warren Buffett.
- The company is sitting on a record $380 billion in cash.
- Investors are questioning how Berkshire will allocate the funds as the AI boom drives up stock prices.
- Abel is expected to focus on the company’s energy and industrial businesses.
A new chapter has begun at Berkshire Hathaway. At the start of 2026, the legendary investor Warren Buffett officially stepped down as CEO, handing the keys to his long-time protégé, Greg Abel. Buffett leaves behind an incredible legacy, having delivered returns of over 6,000,000% during his 60 years at the helm.
The biggest question on everyone’s mind now is what the company will do with its massive $380 billion pile of cash.
The artificial intelligence boom has sent stock prices soaring, making it harder to find the “wonderful companies at a fair price” that Buffett was famous for. Some investors are even suggesting that if Abel can’t find a big deal, he should start paying a dividend.
Analysts expect Abel, who has spent 25 years running Berkshire’s energy and industrial businesses, to lean on that experience. With the AI boom creating huge demand for electricity and infrastructure, Berkshire’s energy division could become an even more important part of the company.
Abel is also expected to be a more hands-on manager than Buffett. While Buffett and his partner, the late Charlie Munger, were famous for letting their companies run themselves, Abel is known for being more involved in the day-to-day operations.
Some analysts believe there’s “a lot of fat to cut” at Berkshire and that Abel could consolidate divisions and find new ways to boost profitability.
Even though Buffett is no longer in charge, his influence will be felt for years to come. His value-investing philosophy has shaped generations of investors, and his timeless advice will continue to guide the company’s decisions. For now, all eyes are on Greg Abel as he steps into the biggest shoes in the investing world.
