For the first time, Warren Buffett will not be the central figure at Berkshire Hathaway’s annual meeting on May 2, 2026, in Omaha. This marks a significant leadership transition as Greg Abel steps into the spotlight as CEO.
Abel officially took over as CEO at the start of this year, but can he fill Buffett’s shoes? The challenge is immense—Buffett has long been synonymous with the company’s identity and investment philosophy.
Recent financial indicators present a mixed picture. Operating earnings fell nearly 30% in the fourth quarter of 2025, driven by a staggering 54% drop in insurance underwriting profits. Moreover, Berkshire’s shares have declined more than 5% year to date and have trailed the S&P 500 index by over 30 percentage points since Buffett announced his plans to step down last May.
Key financial highlights:
- Operating earnings decreased by nearly 30% in Q4 2025.
- Insurance underwriting profits dropped by 54%.
- Berkshire’s shares fell more than 5% year to date.
- Berkshire has lagged the S&P 500 by over 30 percentage points since last May.
In an effort to bolster shareholder confidence, Berkshire resumed stock buybacks in March for the first time since 2024, repurchasing approximately $226 million worth of shares. Greg Abel even used his entire after-tax salary of $15 million to personally purchase Berkshire shares—a move that signals his commitment to the company.
The annual meeting is projected to attract around 30,000 shareholders—a testament to the enduring interest in Berkshire Hathaway despite recent challenges. Yet, as Macrae Sykes aptly noted, “Clearly, nobody can replace Warren on the stage.”
As investors look ahead, uncertainties linger. Will Abel’s leadership style resonate with shareholders? Can he navigate these turbulent waters effectively? Bill Stone expressed skepticism about near-term earnings growth: “I think part of it is really hard to expect a whole lot of earnings growth this year.”
