With the formal transfer of leadership from founder Warren Buffett to Vice Chairman Greg Abel, Berkshire Hathaway's future direction is attracting increasing attention. Having been a leading investment firm in the United States for 60 years, the market is keenly monitoring its sustainability following this leadership change.
Warren Buffett had previously announced his plans to retire at the end of 2025, handing over the CEO title to his successor, Greg Abel, on January 1st of this year. However, he decided to retain the position of Chairman of the Board, meaning that although he is officially stepping down from frontline operations, he will continue to play an advisory role. The investment community is closely watching the extent to which Buffett, known as the "investment mentor," will influence the company's operations.
In a recent CNBC interview, Buffett expressed confidence: "I think Berkshire Hathaway is more likely to still be around a hundred years from now than any other company I can think of." He specifically emphasized, "I believe Abel can manage my money better than any top investment advisor in the United States," thus expressing his trust in his successor. This has been interpreted as conveying confidence in the new leadership to organization members and investors.
Berkshire Hathaway, originally a struggling textile company, has achieved sustained growth since its acquisition in 1965 through investments in insurance, railroads, energy, and consumer goods. For decades, the company has adhered to a "value investing" philosophy, pursuing stable long-term investments, and its stock price has increased approximately 6.1 million times over 60 years. As of September 2023, Berkshire Hathaway had approximately $381.7 billion in cash and cash equivalents (approximately 552 trillion Korean won) and approximately $283.2 billion in equity assets (approximately 410 trillion Korean won).
The market generally believes that a CEO change at a large investment holding company like Berkshire Hathaway is not a strategic shift, but rather a natural generational transition to maintain sustainability. Abel had already been in charge of core operational practices for several years and had received management experience under the guidance of Buffett, who emphasizes financial stability and consistency in investment philosophy.
This trend could be a positive sign for investors. As companies strengthen their systematic operating structures and reduce reliance on individual capabilities, it is expected to help maintain the confidence of long-term investment capital globally. However, given Warren Buffett's far-reaching influence, an independent assessment of Abel's leadership will take time.
