To The Moon

BRK.B - Post Warren era.

Warren Buffett’s final transition at $Berkshire Hathaway(BRK.B)$ is now complete.

On 18 Sep 2026, Berkshire announced that Mr Warren Buffett, aged 96, would step down as chairman of the board with immediate effect and become Chairman Emeritus and retains his director seat.

His son, Howard G. Buffett, will succeed him as chairman with Greg Abel as CEO, since assuming the role at the beginning of 2026.

Final Handover

In his shareholder letter, Buffett acknowledged the inevitability of time, writing that “Father Time always wins,” while also saying that time had been generous enough to let him see Berkshire reach a point where he was more confident than ever about its future.

I mean, he has to say something politically positive, no.

The announcement represents the final stage of a succession process that began before the latest change:

• Buffett first announced on 3 May 2025 that he intended to relinquish the CEO role.

• He subsequently stepped down as CEO on 31 Dec 2025.

• Greg Abel assumed CEO role at the start of 2026.

• The 18 Sep 2026 decision to relinquish the chairmanship therefore completes the separation of Buffett from Berkshire’s executive and board leadership.

Nevertheless, he remains connected to the company as (a) a Director and (b) Chairman emeritus.

Achievements Extraordinaire.

Buffett’s record at Berkshire is difficult to match.

It began in 1962 with the purchase of shares in Berkshire Hathaway, a declining New England textile manufacturer.

And like they say, the rest is history:

• 1962–1965: Buffett began purchasing shares in BRK.B slowly, taking complete control in 1965. He spent the first 20 years attempting to turn the textile business around without success.

• 1967: Acquired National Indemnity, initiating the vital insurance float model that allowed Buffett to invest premium dollars before paying claims, maximizing market returns.

• 1970: Buffett officially assumed the role of chairman of the board. Over the decades, the stock achieved an average annual return of +19.7%, roughly double the S&P 500 Index over the same period.

• 1988–1989: Buffett initiated major stake purchases in $Coca-Cola(KO)$, exemplifying his preference for dominant, easily understandable brands.

• 1996–2000: Acquisitions of GEICO, General Re, and MidAmerican Energy built out the massive operational side of the conglomerate.

• 2008–2011: During the great financial crisis, Buffett provided multi-billion-dollar cash infusions and votes of confidence to major institutions like Goldman Sachs (GS) and $Bank of America(BAC)$, securing exceptional returns.

Overall BRK.B now spans businesses such as Burlington Northern - one of US’ important railroads, and Clayton Homes, a major participant in the housing market.

This breadth helps explain why BRK.B’s succession is not merely an investment-management issue.

It is also a question of governance, capital allocation and the preservation of a distinctive corporate culture.

He has build a conglomerate business with approximately $44.5 billion in operating earnings in 2025 with nearly 400,000 employees.

Incoming Chairman - Howard Buffett.

Howard G. Buffett, 71, has been chosen to succeed Warren Buffett (his father) as chairman.

He has served on BRK.B’s board since 1993, a 33-year apprenticeship when he assumes the role with immediate effect on 21 Sep 2026.

His professional experience includes:

• Investor-relations work at Archer Daniels Midland.

• Director at KO for 17 years, that he stepped down in 2016.

• He has been Chairman & Chief executive of the Howard G. Buffett Foundation, founded in 1999.

He is described by Warren as "a policy, BRK.B shareholders own and hope never to claim against".

Howard’s primary focus is to guard the corporate culture and values, rather than running day-to-day operations.

In short, he represents a direct link to values created by Warren Buffett & Charlie Munger: decentralised management, long-term thinking, conservative financing and a preference for capable managers operating with considerable autonomy.

Greg Abel.

Greg Abel has been at the helm since 02 Jan 2026 and his heavy focus on operations, has already exceeded expectations.

For example the +16% YoY rise in Q2 operating earnings to nearly $13 billion is solid results, then the executive stock buybacks, and the significant purchases of $Alphabet(GOOG)$.

The change in strategy is not a rejection of Berkshire’s culture, but a gradual evolution in how capital is deployed.

Anticipated Investment Evolution:

(1) Technology and diversification.

BRK.B’s equity portfolio may become less dependent on Buffett’s personal preferences eg. media stock like $Sirius XM(SIRI)$ .

Recently, portfolio weightings have shifted increasingly toward sectors Buffett traditionally avoided, with more than ⅓ of the current portfolio invested in technology stocks.

(2) Operational Focus.

Barron’s view is Abel may choose to play on his strength, that is operating businesses rather than treating the listed-equity portfolio as the main source of value creation.

This could mean dedicating more of his bandwidth to managing BRK.B's dozens of critical operating units, such as Burlington Northern railroad and Clayton Homes.

Its still in its early days, so give it time for the actual focs to play itself out.

(3) Capital Deployment.

Observers will need to continue and monitor for themselves on how Abel will deploy BRK.B's massive cash reserve of no less than $365 billion.

Whether he can command the same legendary reputational leverage and favourable deal terms when negotiating acquisitions or investments, that Warren Buffett has historically been renowned for.

In the short to medium term, BRK.B will likely stay the same; that is an insurance giant with a big investment portfolio, while gaining somewhat greater flexibility in technology exposure, share repurchases, acquisitions and operational capital allocation.

Leadership Impact.

More importantly, what impact do all these leadership changes have on the stock ?

For a thorough assessment, the transition of power has unfolded through 3 notable milestones:

• 03 May 2025 Announcement: The initial revelation regarding the impending shift in leadership.

• 31 Dec 2025 CEO Transition: Buffett's actual relinquishment of CEO role and Greg Abel takes control.

• 18 Sep 2026 Chairman Resignation: The sudden, immediate announcement of Buffett stepping down entirely from the chairman seat.

BRK.B - 2025 stock movement

• Following the May 2025 announcement, BRK.B experienced periods of volatility.

• It finished 2025 with an +11.43% gain (+$51.55).

• This lagged behind (a) S&P 500 with a year end gain of +16.65% and (b) Nasdaq’s +25.44% gains, as the tech-heavy indexes surged.

• Nevertheless, it delivered a positive return after succession announcement, but it underperformed both benchmarks, particularly the Nasdaq.

My viewpoint :

The sequence suggests the announcement did not trigger a collapse in BRK.B.

It continued to rise, but it did not participate fully in the market’s stronger advance.

That relative underperformance may indicate that investors began to view BRK.B less as a Buffett-led investment vehicle and more as a mature, defensive conglomerate.

BRK.B - Past 12 months stock movement

On 31 Dec 2025, Buffett officially relinquished the CEO position, with Greg Abel taking the reins at the beginning of 2026.

Historically, this is a first point at which BRK.B’s day-to-day leadership actually changed.

As of Sat, 19 Sep 2026, BRK.B’s YTD performance is approx. +2.60%, compared with S&P 500’s +11.55% gains and Nasdaq’s +14.15%.

How I See It.

Its a clear continuation of the relative-performance gap seen in 2025 where BRK.B remained positive, but lagged both benchmarks by a wide margin.

Its underperformance was even greater against the Nasdaq, reflecting the stronger performance of technology-oriented equities.

Perhaps, the important point is BRK.B’s weak relative performance in 2026 should not be interpreted as evidence that Abel’s leadership has failed.

Argumentatively, under Abel, BRK.B’s Q2 operating earnings have risen by +16% YoY to nearly $13 billion.

A full transition needs to be given the benefit of time, it is not a faucet that could be turn full at a whim. Agree ?

These developments suggest that the transition is producing some changes in capital allocation, even though the stock has not kept pace with the broader market.

Post 18 Sep Chairman Step Down.

The announcement represents the final & most symbolic interruption.

Unlike CEO transition, a chairman’s departure does not incur operational control transfer to a new executive, there is none.

Howard’s assumption of Chairman role is expected to be one of cultural stewardship rather than executive management.

For that reason, the immediate stock-market impact could be less significant than reaction to May 2025 CEO announcement or December 2025 CEO handover. Makes sense right !

The latest announcement mainly confirms that BRK.B has moved beyond Buffett’s direct control of both management and the board.

Summary.

I see BRK.B’s performance since May 2025 reflects a gradual re-rating of BRK.B rather than a sudden loss of confidence.

It appears, investors still believe (for now) that BRK.B will remain financially strong and operationally diversified, and they are also recognising that it may no longer produce the same market-beating results associated with Buffett’s historical record.

Without a crystal ball, going forward, I think BRK.B to behave more like a defensive, diversified compounder than a high-growth market leader.

It may continue to lag Nasdaq when technology stocks dominate market returns, as above charts already show.

Relative performance could improve if Abel (a) deploys BRK.B’s cash effectively, (b) expands operating earnings and (c) maintains disciplined capital allocation.

Over the long term, BRK.B should remain a stable compounder, supported by steady capital allocation and strict adherence to the foundational risk disciplines, instilled by its founder.

Question is are investors willing to accept such ‘meagre’ returns for their hard earned monies after years of record-breaking returns? What about you ?

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