**Berkshire Hathaway’s New Direction Under Greg Abel**
Greg Abel has officially taken over as CEO of Berkshire Hathaway, introducing a new approach in an 18-page letter to shareholders. Abel, who succeeds Warren Buffett, outlined the conglomerate’s decentralized corporate structure, which includes 51 non-insurance operating divisions such as insurance, energy, mortgages, and railroads. He emphasized that the focus will remain on allowing business leaders greater autonomy while maintaining accountability.
Abel revealed that Berkshire’s massive $315 billion equity portfolio will experience “limited activity” moving forward, particularly regarding four major stocks: Apple, American Express, Coca-Cola, and Moody’s. This suggests a shift in investment strategy, focusing on long-term holdings rather than frequent trading.
Financially, Berkshire holds approximately $370 billion in cash and short-term U.S. Treasury bonds. While analysts speculated about possible dividends, Abel affirmed that no dividends will be issued unless the company believes it cannot generate more value through business investments. The management will continue to repurchase shares only when they fall below intrinsic value.
