Business as Usual
This weekend marks another big moment for Berkshire Hathaway: the latest shareholder letter was published, and for the first time, it wasn’t written by investor legend Warren Buffett, but by the new CEO, Greg Abel. I took a close look, here are my key takeaways:
Abel strongly emphasized continuity with Buffett’s long-standing investment principles. He called Buffett’s legacy “a very hard act to follow” and positioned himself not as a reformer, but as a steward, someone strengthening the foundation rather than reinventing the company.
On the portfolio, Abel made it clear that Apple remains a core holding and a long-term compounder. In contrast, he described the KraftHeinz investment as “disappointing,” with returns “well short of adequate,” and signaled that Berkshire is evaluating its options, potentially reducing or exiting if better alternatives arise. He also highlighted major positions like American Express, Coca-Cola, and Moody’s as durable long-term holdings Berkshire intends to keep.
Berkshire ended 2025 with more than $373 billion in cash and Treasuries. Abel framed this not as inactivity, but as strategic “dry powder, capital ready to deploy when valuations become compelling. He also reaffirmed the company’s long-standing stance of not paying a dividend. Capital will only be distributed if it can no longer be reinvested at attractive rates, and Berkshire clearly believes it’s not at that point.
While Abel avoided bold macro forecasts, the message between the lines was clear. The massive cash pile reflects a market where large, attractively priced opportunities are scarce. At the same time, it positions Berkshire perfectly for times of stress or dislocation, a classic Berkshire anticyclical setup.
And perhaps most interesting is what wasn’t there: No sweeping macro predictions. No dramatic AI narrative. No strategic pivot.
For a generational leadership transition at one of the world’s most iconic conglomerates, the lack of drama may be the biggest statement of all.
To me, the letter was largely what I expected: calm, disciplined, steady. Buffett clearly prepared the stage before stepping back , streamlining the portfolio and building the cash buffer so Abel can start from a position of strength, without urgent fires to put out. He can afford to wait patiently for the right opportunities.
I plan to do the same, continuing to build my $BRK position step by step.
