Greg Abel Pledges Continuity in First Berkshire Letter

Greg Abel, the new chief executive of BERKSHIRE HATHAWAY INC-CL A, released his inaugural annual letter to shareholders on Saturday, outlining a commitment to the financial principles established by his predecessor. Operating within the United States, the 63-year-old executive emphasized the maintenance of a fortress-like balance sheet while signaling a deliberate approach to the conglomerate's massive cash reserves. Abel indicated that he would not rush to deploy the company's near-record $373.3 billion cash stake, preferring to keep significant dry powder available for strategic opportunities. He also confirmed that Berkshire has no plans to initiate dividend payments and has refrained from repurchasing its own stock since the spring of 2024. > I recognize how you want us to succeed together, and to do so in the right way. The chief executive used the letter to pay tribute to Warren Buffett, the 95-year-old founder who stepped down at the end of 2025 after six decades at the helm. While Buffett remains chairman and continues to work from the office daily, Abel is now tasked with managing the transition. > To invest in Berkshire has long been a vote of trust in our founder – a trust that now rests with Berkshire. In a move to reassure investors of continuity, Abel stated that the company's decentralized culture would remain unchanged. He clarified that Berkshire has no interest in acquiring another major railroad to join its BNSF subsidiary and addressed the legal challenges facing its PacifiCorp utility regarding wildfire litigation in Oregon. > PacifiCorp is not an insurer of last resort and should not be treated as a deep pocket. Financial results for the period showed a decline in profitability, largely attributed to write-downs on long-term investments. Specifically, the conglomerate recorded adjustments for its holdings in The Kraft Heinz Company and Occidental Petroleum Corporation. Quarterly operating profit dropped 30% to $10.2 billion, while net income fell 3% to $19.2 billion. These figures include valuation changes in major equity positions such as Apple Inc. and American Express Company. For the full year 2025, operating profit decreased 6% to $44.49 billion, and net income saw a 25% reduction to $67 billion. Analysts noted that Abel's communication was designed to project stability during a significant leadership transition. > He needed to show a degree of continuity, that the Berkshire franchise would continue despite the change in leadership, and it would be business as usual.