When Greg Abel Takes the Helm: The Legacy Continues at Berkshire Hathaway

A Historic Transition on Wall Street

On January 1st, Greg Abel officially became the new CEO of Berkshire Hathaway, marking the end of an era and the beginning of another. Although Warren Buffett remains as chairman, this transition represents a crucial moment for the billion-dollar company. Abel, who has stayed in the shadows for decades, now faces the expectation of millions of shareholders and market observers eager to see if he can maintain the success Buffett built.

From Anonymity to Center Stage

When most people hear the name Berkshire Hathaway, they think of Buffett. His austere lifestyle, investment wisdom, and public charisma made him an iconic figure. Greg Abel, on the other hand, has lived virtually unknown outside financial circles. While Buffett has shared the stage with celebrities, Abel reserved his words for annual shareholder meetings.

This low profile is no coincidence. After analyzing his public appearances, a clear pattern emerges: a methodical leader, deeply committed to the principles Buffett established, and little inclined to introduce disruptive changes.

A Twenty-Five Year Path

Abel joined Berkshire in 2000, when Buffett acquired MidAmerican Energy. His rise was gradual: first leading that subsidiary, then in 2018 being named Vice President of non-insurance operations. Starting in 2020, he began sharing the public scene with Buffett, gradually gaining visibility.

For years, his interventions focused on discussing operational subsidiaries: Berkshire Hathaway Energy and BNSF Railway. His messages were consistent: defend Berkshire’s unique corporate culture, praise management teams, and highlight how the owner mentality of managers sets the company apart. Abel emphasized that this structure would not change.

A More Involved Leadership Style

While Abel deeply respects Buffett’s non-intervention philosophy, he acknowledges that his own approach will be more active. Interestingly, he sees this as a positive difference, not a break.

This difference is reflected in how he approaches operational challenges. When BNSF faced criticism over tribal land management, or when PacifiCorp had to respond to questionable forestry strategies, Abel did not shirk responsibilities. Instead, he acknowledged mistakes and learned lessons, following the example Buffett and Charlie Munger always demonstrated: the ability to learn and adjust.

Investment Principles Remain Intact

What did Abel assure shareholders in the 2024 meeting? That Berkshire Hathaway’s fundamental capital strategy pillars would not be modified. His approach will remain faithful to Buffett’s principles: viewing each stock purchase as a long-term business investment, evaluating based on future value and risks, and maintaining discipline and patience.

Like Buffett, who dubbed himself “Risk Director” of Berkshire, Abel has emphasized his commitment to three pillars: safeguarding corporate reputation, responsibly managing shareholders’ assets, and maintaining a solid balance sheet that ensures resilience in any economic scenario.

Beyond Shareholder Meetings

Abel revealed little about his personal life, but in the past year, he shared something revealing: he hopes to be remembered as a dedicated father and as a coach for young athletes in hockey and baseball. This perspective offers a window into his values.

His daily habits include extensive reading about Berkshire: its businesses, industries, competitors, risks, and potential disruptors. Abel believes that hard work and genuine desire to contribute are key ingredients for success.

His annual compensation of $25 million reflects Berkshire’s confidence in his ability to lead a company of this magnitude.

The Next Era

Abel is fully aware of the weight of leading a billion-dollar company. He has expressed deep gratitude and humility for the opportunity to succeed Buffett after working with him for a quarter of a century. As Buffett used to say that he “jumps to work for pure pleasure,” Abel stated that finding something as special as Berkshire makes every day fulfilling.

After allowing Buffett to remain in the spotlight, it is now Abel who takes the lead. Shareholders will soon get to know more closely the man who will guide Berkshire Hathaway’s next era, with Warren Buffett observing from the presidency.