Warren Buffett Is ‘A Very Hard Act to Follow,’ Says Berkshire’s New CEO. He Wants to Make Berkshire ‘Even Stronger.’

2026-02-28 16:47:28

Key Takeaways

Greg Abel delivered his first shareholder letter as Berkshire Hathaway’s CEO on Saturday, after Warren Buffett stepped down from the role in December.
Berkshire’s operating earnings dropped nearly 30% in Buffett’s final quarter as CEO, as the company took write-downs of its stakes in Kraft Heinz and Occidental Petroleum.

Warren Buffett’s successor Greg Abel wants Berkshire Hathaway investors to know he’ll be able to build on the legendary investor’s legacy. But can he convince them?

In the new CEO’s first annual letter to Berkshire Hathaway (BRK.A, BRK.B) shareholders Saturday, Abel sought to assure investors of his commitment to upholding values established under Buffett’s leadership, along with the conglomerate’s potential for growth after a disappointing quarter. Buffett stepped down in December after six decades at the helm of Berkshire.

“Warren is obviously a very hard act to follow,” Abel said Saturday in the letter released alongside the company’s fourth-quarter earnings report.

“I will not be your CEO for the next 60 years as simple arithmetic makes that—shall we say—an ambitious plan. However, 20 years from now, when I will have just a fraction of the tenure that Warren had, my intention is that you—or your descendants—will be proud that your company is even stronger,” Abel wrote.

Berkshire posted a nearly 30% year-over-year drop in operating earnings to $10.2 billion in Warren Buffett’s final quarter as CEO, as the company took write-downs of its stakes in Kraft Heinz (KHC) and Occidental Petroleum (OXY). “Our investment in Kraft Heinz has been disappointing,” wrote Abel.

Why This Is Significant

Amid uncertainty about how Berkshire could change under new leadership, Abel has sought to reassure investors of his commitment to Buffett’s legacy and ability to deliver returns. The 95-year-old Buffett still remains on Berkshire’s board.

Berkshire’s cash and U.S. Treasury holdings dropped to $373.3 billion from a record $381.7 billion in the third quarter. The company held off on buying back its own shares.

For the full year, Berkshire’s operating earnings slid to $44.5 billion, down from $47.4 billion in 2024, though the company noted that was above its $37.5 billion average over the past five years. Abel said the results underscored the durability of the company’s businesses, “while also reflecting the fact that we have opportunities for further improvement.”

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The CEO did not move to introduce a dividend, as some had speculated ahead of Saturday’s report.

“Our approach to cash dividends continues to be that Berkshire will not pay dividends so long as more than one dollar of market value for shareholders is reasonably likely to be created by each dollar of retained earnings,” said Abel.

Berkshire’s class B shares (BRK.B) have added less than 1% in 2026 so far, and remain about 6% off last May’s highs, before Buffett announced he would be leaving the CEO post.

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