Berkshire Hathaway’s New Era Under CEO Greg Abel
In an unprecedented change, Greg Abel became the first new CEO of Berkshire Hathaway in over 60 years, taking the helm in early 2026. Under his leadership, the company ended the first quarter with a record cash reserve of $397 billion, up from $373 billion at the end of 2025. This substantial cash position represents more than a third of Berkshire’s total market value, approximately $1.1 trillion.
Abel has quickly made impactful decisions, including a $6.8 billion acquisition of homebuilder Taylor Morrison, at a 24% premium, and a $10 billion investment in Alphabet, increasing Berkshire’s holding in Google’s parent company to over $26 billion. Simultaneously, he maintained Berkshire’s significant investment in Apple, which constitutes around 22% of its portfolio. His actions suggest a strategic shift towards more aggressive capital deployment, aligning with Warren Buffett’s investment philosophy, but with a willingness to explore new sectors.
Berkshire stock currently trades at about 1.5 times book value, around its ten-year average, while first-quarter operating earnings rose approximately 18% year over year. Abel’s early moves have drawn both investor optimism and caution, reflecting a balancing act between seizing opportunities and maintaining discipline in capital allocation.
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