Berkshire Hathaway ends the Warren Buffett era with the appointment of Greg Abel as new CEO

The long-term leadership that has lasted over 60 years is about to come to an end this month. Legendary investor Warren is stepping down from the top of Berkshire Hathaway, and the formal transfer of authority to his successor Greg Abel will be completed. This marks a significant milestone not only on Wall Street but across the entire investment world.

What the Century-Old Investor Has Brought

Warren’s career began long before modern tech CEOs emerged. His achievements in the challenging financial environment before the internet era remain unparalleled to this day.

His asset size is astonishing. Had you invested one million dollars in the S&P 500 over the 50 years from 1957 to 2007, it would have grown to $166 million. However, if Warren had managed the same amount, it would have expanded to an extraordinary scale of $81 billion. Moreover, including the past 18 years, Berkshire’s assets have reached a level of $428 billion.

His investment philosophy is extremely simple: acquiring Burlington Northern, holding Apple stock long-term, and maintaining a consistent bullish buying strategy. Unaffected by trends, he turned away from assets like cryptocurrencies, but quietly responded to the new wave of AI.

Management Philosophy Passed on by Greg Abel

Greg will officially take over as CEO on Wednesday. He is expected to uphold Buffett’s management philosophy.

The essence of the Buffett family’s approach to management is clear. Do what you promise, execute it at the planned time, and take responsibility if mistakes are made—this corporate culture, once explained by Howard Buffett (Warren’s son), will be inherited by Greg. He will continue to buy and increase strong companies, remain unfazed even when markets are in turmoil, and avoid judgments without numerical backing. This policy remains unchanged.

Current Overheating Indicated by Market Valuation

The Buffett indicator is currently issuing an important warning. This indicator, which divides the Wilshire 5000 Index by US GDP, has reached 221.4%, recording a 22% increase since April 30. Since data collection began in 1970, it has hit its highest level.

The background of this surge is the AI market boom expected in 2025. As an indicator of overvaluation, this figure urges investors to exercise caution.

Warren himself was not a bystander. His portfolio still includes Apple, Amazon, and Alphabet, demonstrating a stance of not ignoring but quietly adapting to the wave of the AI era.

Anxiety and Expectations for the Next Generation

Now that Warren has left, who is the compass guiding the market? This question is emerging across the industry.

His investment judgments served as a benchmark in the financial industry. People evaluated him alongside Einstein and Edison, and it was almost laughable to call oneself the “next Warren Buffett.” He listened humbly but knew he was in a realm he could not match.

In the past, the writer sent Warren an open letter encouraging him to complete his legacy in cryptocurrencies through Bitcoin investments, but he did not respond. Not bending his principles was Warren’s way.

Berkshire is steering toward a new regime. The market will watch whether Greg can maintain the same philosophy. With certainty diminishing, investors are beginning to explore the new landscape of the era.