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    The Bull Case For Berkshire Hathaway (BRK.A) Could Change Following Buffett’s CEO Handover To Greg Abel

    Simply Wall St·01/05/2026 03:24:51
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    • Warren Buffett has now retired as chief executive of Berkshire Hathaway after a leadership tenure that began in 1965, with longtime lieutenant Greg Abel officially assuming the CEO role while Buffett remains chairman.
    • As Berkshire enters this post-Buffett era, investors are intensely focused on how Abel will deploy the conglomerate’s very large cash pile and reshape capital allocation.
    • We’ll now examine how Buffett’s handover to Greg Abel may influence Berkshire Hathaway’s investment narrative, particularly around capital deployment discipline.

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    What Is Berkshire Hathaway's Investment Narrative?

    To own Berkshire today, you really need to buy into the idea of a cash-rich, diversified holding company that can still create value under new leadership. Greg Abel now controls a record US$381.6 billion cash pile and has already signed off on a sizeable deal, buying OxyChem from Occidental for US$9.7 billion, so capital deployment is clearly front and center in the post-Buffett era. In the short term, the key catalysts are how quickly Abel moves on further acquisitions or buybacks, and whether mounting calls for a dividend gain traction, especially with earnings forecast to drift lower over the next few years. The main new risk is execution: shifting from Buffett’s highly centralized capital allocation to Abel’s more hands-on consolidation focus without diluting Berkshire’s long-standing discipline.

    However, few investors are fully factoring in how leadership changes could reshape Berkshire’s risk profile. Despite retreating, Berkshire Hathaway's shares might still be trading 36% above their fair value. Discover the potential downside here.

    Exploring Other Perspectives

    BRK.A 1-Year Stock Price Chart
    BRK.A 1-Year Stock Price Chart

    Twenty members of the Simply Wall St Community value Berkshire at about US$648,644.89 to US$1.17 million per A share, reflecting very different expectations. Set that against a business facing slowing forecast earnings and a huge cash position that now depends on Greg Abel’s capital decisions, and you can see why it pays to weigh several viewpoints before forming your own stance.

    Explore 20 other fair value estimates on Berkshire Hathaway - why the stock might be worth as much as 57% more than the current price!

    Build Your Own Berkshire Hathaway Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.