## A New Era for Berkshire Hathaway Begins—The End of the Warren Buffett Era and the Transition to Greg Abel

On Wednesday, Warren Buffett marked his last day as CEO of Berkshire Hathaway. This day concludes over 60 years of leadership, witnessing the end of an era in the financial markets. Greg Abel officially takes the helm, beginning the stewardship of the corporate empire inherited from the sage of Omaha.

### The Footprints Left by a Legendary Investor—Impressive Returns Told in Numbers

Warren Buffett’s career began long before many current tech company executives were born. Having navigated the pre-internet financial crises and remained steadfast in his investment philosophy amid market turbulence, his approach remains the industry standard today.

Looking at concrete figures, his greatness becomes immediately clear. Over 50 years from 1957 to 2007, a $1 million investment in the S&P 500 would have grown to $166 million. However, if Warren had managed the same amount, it would have ballooned to $81 billion. Adding the subsequent 18 years, Berkshire Hathaway’s current valuation reaches $428 billion.

### Warning Signals Indicated by the Buffett Indicator—Market Overheating at Its Peak

Notably, the Buffett Indicator, published by Fortune magazine in 2001, has now reached 221.4%. This indicator is calculated by dividing the Wilshire 5000 Index by the US GDP, with higher values indicating an overheated stock market. Since April 30, it has surged by 22%, marking the largest increase since the data collection began in 1970.

Behind this surge is the AI mania of 2025. Excessive expectations for technological innovation are driving stock prices higher. Warren Buffett himself continues to invest in Apple, Amazon, and Alphabet, indicating his focus on the digital revolution. While maintaining distance from cryptocurrencies, he quietly rides the wave of AI-driven growth.

### What Greg Abel Inherits—Berkshire’s DNA

Greg Abel is the successor Warren Buffett has designated over many years. He will carry forward Berkshire’s management philosophy intact.

The concept demonstrated by Warren’s son Howard Buffett is clear: “Do what you say, and do it when you say you will. Be honest about it. Take responsibility for your mistakes.” This principle remains unshaken and will be upheld by Greg in the new leadership.

Acquiring strong companies, avoiding market panic, and refraining from making statements without data—this playbook remains unchanged. Berkshire’s investment philosophy will be passed down through generations.

### Loss of Certainty—Market Participants’ Growing Anxiety

The entire financial industry has treated Warren Buffett as a gospel. His judgments, portfolio composition, and even his silence have served as market compass points.

But now, that indicator is beginning to fade. There is no doubt that Greg Abel is highly capable, but the trust and track record built over 60 years cannot be transferred overnight. Among market participants, there is a mix of anticipation for the new era and growing unease.

All eyes are on how Berkshire Hathaway will navigate the overheated market reaching 221.4%, and investors are closely watching the decisions that will be made.