Lately, Warren Buffett introduced his retirement as CEO of Berkshire Hathaway (NYSE: BRK.B), concluding a outstanding 60-year tenure. At 94, the legendary investor generally known as the ‘Oracle of Omaha’ cited the pure results of growing older as causes for stepping down.

His retirement marks the tip of an period for Berkshire, which, underneath his management, grew right into a $1.11trn enterprise. Throughout this time, he navigated the corporate’s funding technique throughout numerous industries from insurance coverage and railroads to client items.

Regardless of stepping down as CEO, Buffett will stay as chairman, providing steerage throughout vital market occasions.

What now?

Taking the reins will likely be Greg Abel, who has overseen the corporate’s non-insurance operations since 2018. He was named Buffett’s successor in 2021, having been described as a ‘natural’ who requires no mentoring. Buffett emphasised that Abel, 62, possesses the vitality and functionality to steer the corporate into the long run.

Whereas the reward is encouraging, buyers will maintain a detailed eye on how Abel handles capital allocation — a task Buffett mastered over many years. Following the Trump administration’s latest U-turn on sure commerce tariffs, the US inventory market is exhibiting indicators of restoration. The transfer has led to a surge in IPO exercise as corporations goal to capitalise on the enhancing market situations.

That would put Abel within the good place to start out his tenure – assuming he has comparable knowledge and guile as his predecessor.

Thus far, issues look good.

Berkshire Hathaway’s Class B shares are already up 14% this yr — a robust indication that buyers believe within the firm’s resilience and future prospects. And analysts mission additional development, with some price targets eyeing a 12% improve. For now, it appears, the market is optimistic about Abel’s management.

Nevertheless, its newest outcomes are much less spectacular.

In Q1 2025, the agency reported working earnings of $9.6bn, a 14% decline from the earlier yr, primarily because of $1.1bn in wildfire-related insurance coverage claims and antagonistic international foreign money impacts. Web revenue dropped 64% to $4.6bn, influenced by unrealised losses on main fairness holdings, together with Apple.

Regardless of these setbacks, the corporate’s monetary place stays stable. Money reserves lately ballooned to a file $347.7bn as Buffett took a conservative strategy and bought inventory amid unfavourable market situations. In the meantime, whole debt decreased by 14.6% yr on yr to $77bn, highlighting his prudent monetary administration. The corporate’s debt-to-equity (D/E) ratio now stands at an simply manageable 19.17%, underscoring a robust stability sheet.

Properly ready

For sure, buyers will possible stay cautious for a while. The transition of management from Warren Buffett to Greg Abel introduces uncertainty concerning future capital allocation choices. Moreover, the corporate’s publicity to climate-related occasions, comparable to wildfires, poses ongoing dangers to its insurance coverage and utility companies.

Fortuitously, a various portfolio matched with a big money pile makes it well-prepared to climate any market situations. Ought to issues begin to enhance, will probably be able to reap the benefits of low-cost shares earlier than they rally.

As such, I feel Berkshire continues to be a inventory value contemplating as international markets look poised for a brand new part of development.