In less than 48 hours, one of the most consequential eras in American business history will draw to a close. Warren Buffett, the 95-year-old "Oracle of Omaha" who transformed a failing textile mill into a $1 trillion global powerhouse, will officially step down as CEO of Berkshire Hathaway on December 31, 2025, handing the reins to his long-groomed successor, Greg Abel.

The transition, announced in a dramatic final-minutes revelation at Berkshire's annual shareholder meeting in May 2025, marks the end of a 60-year tenure that made Buffett not just one of the wealthiest people on the planet, but arguably the most influential investor in modern financial history.

The Transition: What Changes on January 1

When the calendar flips to 2026, several key leadership changes will take effect simultaneously:

  • Greg Abel becomes President and CEO, taking operational control of Berkshire's sprawling empire of more than 80 subsidiary companies
  • Howard Buffett, Warren's son, assumes the role of non-executive Chairman, serving as a cultural guardian rather than an operational leader
  • Todd Combs concludes his tenure at Berkshire and joins JPMorgan Chase, where he has served as a board director since 2016
  • Adam Johnson, currently CEO of NetJets, takes over as president of Berkshire's consumer products, service, and retailing businesses

Notably, Marc Hamburg, Berkshire's longtime CFO, will also retire as part of the transition, closing another chapter of the company's old guard leadership.

Who Is Greg Abel?

Abel, 62, has been Berkshire's vice chairman of non-insurance operations since 2018 and was publicly anointed as the designated successor in 2021 when Charlie Munger, Buffett's legendary business partner who passed away in November 2023, assured shareholders that Abel would maintain the company's culture.

His path to the top job began in public accounting at PricewaterhouseCoopers before joining CalEnergy in 1992. When CalEnergy acquired MidAmerican Energy in 1999, Abel was named president. He steadily rose through the ranks, demonstrating the operational excellence and ethical compass that Buffett prizes above all else.

"Greg Abel will become the boss at yearend. He is a great manager, a tireless worker and an honest communicator."

— Warren Buffett, November 2025 shareholder letter

Buffett's Ongoing Role

While stepping down as CEO, Buffett isn't disappearing entirely. He plans to continue coming into the office each day at Berkshire's modest Omaha headquarters, offering Abel advice when asked and helping spot new investment opportunities. However, he has made clear that the annual shareholder letter and the legendary shareholder meetings will now be Abel's responsibility.

This arrangement mirrors the advisory role that Munger played in his final years, providing wisdom without operational burden.

Market Performance and Investor Concerns

Berkshire's stock performance in 2025 has reflected investor uncertainty about the transition. While the S&P 500 has gained more than 17% year-to-date, Berkshire has returned roughly 9.2%, lagging the broader market as shareholders grapple with two key concerns:

  • The massive cash pile: Berkshire sits on a record $325 billion in cash and Treasury bills, a war chest that Buffett has struggled to deploy in a market he's repeatedly called overvalued
  • The succession uncertainty: Despite Abel's proven track record, replacing a once-in-a-generation investor is inherently uncharted territory

What Investors Should Watch in 2026

As Abel takes the helm, several key questions will shape Berkshire's trajectory:

Capital Deployment

Will Abel be more aggressive in deploying Berkshire's massive cash reserves? Buffett's patience has been legendary, but critics have argued the company has become too conservative, missing opportunities while earning modest Treasury yields.

M&A Strategy

Berkshire hasn't made a major acquisition in years. Abel's operational background suggests he may be more comfortable integrating large purchases, potentially unlocking deals that Buffett passed on.

Cultural Continuity

The decentralized management philosophy that defines Berkshire—giving subsidiary CEOs extraordinary autonomy—will face its ultimate test. Howard Buffett's role as cultural guardian will be critical in ensuring the company's unique character survives the transition.

A Legacy That Transcends Numbers

By any measure, Buffett's tenure has been extraordinary. A $1,000 investment in Berkshire when he took control in 1965 would be worth more than $42 million today. The company's book value has compounded at roughly 20% annually for six decades, a record unmatched in corporate history.

But Buffett's legacy extends beyond returns. He popularized value investing for a mass audience, demonstrated that integrity and capitalism aren't mutually exclusive, and proved that patient, long-term thinking can triumph over short-term speculation. His annual letters became masterclasses in business and life, studied by everyone from MBA students to Fortune 500 CEOs.

As the final hours of the Buffett era tick away, one thing is certain: whoever leads Berkshire next stands on the shoulders of a giant. The question now is whether Greg Abel can carve out a legacy of his own.

Berkshire Hathaway Class B shares (BRK.B) closed at $468.92 on Monday, down 0.3% for the session.