From Nasdaq: 2025-05-11 05:30:00

Warren Buffett will step down as CEO of Berkshire Hathaway in 2025, with Greg Abel set to take over. Shares dipped 5% post-announcement. Berkshire owns 189 businesses, with GEICO as a major growth engine. The company holds $348 billion in cash and investments, with a stock portfolio valued at $279 billion. Abel’s capital allocation priorities include reinvesting in businesses, acquiring companies, and investing in publicly traded firms.

Berkshire Hathaway is positioned to benefit in a recession with its cash reserves. During the 2008 financial crisis, it made profitable investments in companies like Goldman Sachs, Harley-Davidson, and Bank of America. Incoming CEO Abel will have the liquidity and playbook to capitalize on opportunities in a downturn. Berkshire’s strong leadership and financials make it a compelling long-term investment.

Investors question if Abel can drive Berkshire forward like Tim Cook did with Apple. With Buffett’s support and strong financial performance, Berkshire remains a solid buy. The Motley Fool’s Stock Advisor team identified 10 top stocks, excluding Berkshire. Historically, stocks recommended by the team have produced significant returns. Consider diversifying your investments for potential long-term gains. Stock Advisor’s total average return is 907%, outperforming the S&P 500’s 163%. Don’t miss out on the latest top 10 list by joining Stock Advisor. American Express and Bank of America are advertising partners. Collin Brantmeyer holds positions in American Express, Apple, and Berkshire Hathaway. The Motley Fool recommends Apple, Bank of America, Berkshire Hathaway, and Goldman Sachs Group.



Read more at Nasdaq: Should You Buy Berkshire Hathaway B Shares While They Are Below $550?