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Berkshire Hathaway (BRK-B, Financials) has formally begun transitioning leadership to Greg Abel, with board members confirming he is already operating with CEO-level authority ahead of Warren Buffett (Trades, Portfolio)'s retirement.
Revenue and equity figures were not directly discussed, but Berkshire ended 2024 with $334.2 billion in cash after selling $134 billion in equities. A major component of this portfolio shift was the 67% reduction in its Apple (AAPL, Financials) stake. The iPhone maker, which depends heavily on Chinese manufacturing, has dropped nearly 16% year-to-date.
Berkshire's lead director Sue Decker told CNBC the board views Abel not as a CEO-in-waiting but as a leader already in action. Abel, currently CEO of Berkshire Hathaway Energy, has been involved in major capital allocation decisions and holds the trust of both Buffett and the board.
Abel's elevated role comes ahead of Berkshire's three-day shareholder meeting, where Buffett is expected to lead a Q&A. Market participants anticipate comments on the new 145% tariff on Chinese imports announced by President Donald Trump on April 2.
Buffett previously criticized tariffs in a March interview with CBS, saying, The tooth fairy doesn't pay 'em. Investors such as Steve Check from Check Capital Management are calling for stronger criticism, especially given Berkshire's vast exposure to U.S. economic sectors.
With broad market volatility and investor anxiety, Buffett's silence would signal caution. His actionsoffloading stocks and building cashindicate Berkshire is bracing for economic headwinds.
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This article first appeared on GuruFocus.