The investing world woke up to the end of an era on Saturday, May 3, when Warren Buffett, the legendary CEO of Berkshire Hathaway, announced he will officially step down at the end of 2025 after more than six decades leading the $1.1 trillion conglomerate. The news, while not entirely unexpected, sent shockwaves through financial markets — and Berkshire’s stock.

Shares of Berkshire Hathaway (BRK.B) (BRK.A) dropped nearly 5% in early Monday trading as investors reacted to the transition. The selloff reflects a mix of uncertainty, profit-taking, and emotional reaction from shareholders who’ve long viewed Buffett as the irreplaceable heart of the company. But with Greg Abel — Buffett’s longtime deputy — officially taking the reins, the key question now is: Is Berkshire Hathaway still a buy?

Who Is Greg Abel? Buffett’s Handpicked Successor

Greg Abel, 62, isn’t a newcomer to Berkshire’s inner circle. He joined the company in 2000 through the acquisition of MidAmerican Energy (now part of Berkshire Hathaway Energy) and steadily climbed the ranks to become Vice Chairman of Non-Insurance Operations in 2018. He has overseen a wide swath of Berkshire’s portfolio, including its sprawling utility, railroad, industrial, and retail businesses.

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Buffett had publicly named Abel as his successor as early as 2021, calling him the “right person to take over” due to his deep operational knowledge and clear alignment with Berkshire’s culture. Known for being detail-oriented and pragmatic, Abel is considered a steady hand rather than a showman — a leadership style reminiscent of Buffett’s own no-nonsense approach.

Market Jitters or Opportunity?

Berkshire’s 5% drop reflects investors' concern about what life after Buffett looks like. But it’s also worth noting that such moves are common when iconic leaders step down. Apple (AAPL) dipped after Steve Jobs handed the reins to Tim Cook. Microsoft (MSFT) faltered briefly when Bill Gates exited. In both cases, the stocks ultimately recovered, and went on to thrive.

Abel’s track record offers reassurance. Under his leadership, Berkshire Hathaway Energy became one of the country’s largest utility holding companies, with major investments in wind, solar, and transmission infrastructure. His operational experience spans across key segments of the business that contribute billions in annual earnings.

Moreover, Abel is expected to maintain — not radically change — Buffett’s core principles: long-term investing, decentralized management, and a cautious, cash-rich balance sheet. That continuity is likely to matter more than charisma.

Valuation, Fundamentals, and the Buffett Premium

Berkshire remains one of the most fundamentally sound companies in the world. As of Q1 2025, it holds $347 billion in highly liquid assets, including over $314 billion in short-term U.S. Treasury bills — a war chest that offers unmatched flexibility in turbulent markets.

The company also owns dominant, cash-generating businesses like BNSF Railway, Geico, Berkshire Hathaway Energy, and large equity stakes in Apple, Coca-Cola, and American Express. The conglomerate trades at a modest premium to book value and remains a defensive stalwart with a fortress balance sheet.

With Buffett stepping back, Berkshire may see a temporary reduction in the “Buffett premium” — the halo effect that commands shareholder loyalty and long-term stability. But that could also open the door for value-oriented investors who see the drop as an overreaction.

Is Berkshire Still a Buy?

For long-term investors, the answer is likely still yes — especially if you believe in Abel’s stewardship and the strength of Berkshire’s underlying businesses. Buffett himself will remain involved as Chairman of the Board, providing continuity and counsel during the transition. And with a leadership team steeped in his philosophy, the culture isn’t likely to change overnight. Abel was announced as his successor in 2021, so there have already been years of mentorship directly under Buffett and the late Charlie Munger.  

Buffett has long championed the idea of only investing in things that you know. While Buffett was often considered the king of boring and basic businesses, Abel is one of the most capable people on the planet regarding energy and utilities. Given the rocketing demand for electricity in an age where AI data centers are projected to eventually consume 12% of the world's electricity, there might be no better person on the planet to capture this growing trend without diving into speculative trends. Abel will certainly bring a new perspective to the company — using his unique set of skills — but that’s exactly what Buffett did for 6 decades, which led to so much success. Abel could prove to be the perfect steward of classic Berkshire Hathaway ideals. 

If history is any guide, short-term doubt often gives way to long-term resilience — especially when a transition is planned, and a capable successor is in place. Greg Abel is not Warren Buffett. But he doesn’t have to be.

In a company built on consistency, conservatism, and conviction, that might be exactly what investors need.