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Berkshire Hathaway (BRK.A, Financials) is entering a new era. After 60 years at the helm, Warren Buffett (Trades, Portfolio) is stepping back, and Greg Abel is set to take over as CEO. The handoff has been in the works for years, but now it's taking center stage as shareholders gather in Omaha.
Buffett leaves behind a company that grew from a struggling textile mill into a $1.15 trillion giant. Through April, Berkshire shares are up 18% this year, handily beating the S&P 500's 5% drop. Investors still trust the Buffett playbook: patience, discipline, and plenty of dry powder.
That dry powder$334.2 billion in cashhas people wondering what's next. With rates where they are, that pile could generate $14 billion a year. But did Berkshire buy anything during April's market swoon? If not, some fear it signals a defensive stance just when action is needed.
Its insurance operations remain a backbone, delivering 48% of last year's $47.4 billion in operating profit. But more than half of Berkshire's 189 businesses saw earnings fall, and Trump-era tariffs still loom over units like BNSF Railway and HomeServices of America.
Buffett has always set expectations low. He's said repeatedly that Berkshire won't repeat its past outperformance. Still, the company's resilience and scale give it staying power. The question now is whether Abel, a low-profile but capable operator, can lead with the same steady hand.
Investors are watching closelyfor signs of continuity, confidence, and capital deployment. The Buffett era may be closing, but Berkshire's story isn't over.
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This article first appeared on GuruFocus.