Warren Buffett will step down as CEO of Berkshire Hathaway (BRK.B) at the end of 2025, with Greg Abel set to take over after Buffett’s 60-year tenure. Despite this transition, Berkshire shares have underperformed the market, up only 10% year-to-date compared to 16% for the S&P 500 Index. Valuation wise, BRK.B is trading at a modest premium to diversified financials but a discount to the peer group average, with a discounted cash flow analysis suggesting it’s trading below intrinsic value. Greg Abel will inherit a $380 billion financial war chest, positioning him to capitalize on market opportunities. Berkshire’s diversified business model and strong underwriting float make its shares worth owning in 2026. Wall Street analysts have a “Moderate Buy” rating on BRK.B with price targets indicating potential upside of 19%.

Read more at Barchart: Berkshire Hathaway Is About to Have a New CEO. How Should You Play Its Stock for 2026?