Berkshire Hathaway Inc. is preparing for its annual meeting on May 2, where Greg Abel will take the stage as CEO for the first time, marking a pivotal moment for the conglomerate. Investors are closely watching how Abel will address the company's massive cash reserves and a recent stock slump since Warren Buffett's retirement. The meeting, set for 2 p.m. Central Time at Omaha's CHI Health Center, comes amid heightened scrutiny of Berkshire's post-Buffett strategy.
Leadership Transition and Performance
Warren Buffett stepped down as CEO after nearly six decades at the helm, but he remains chairman and continues to work in the office daily. In his debut annual letter, Abel confirmed his appointment and outlined his vision. However, Berkshire's Class B shares closed at $469.32 on Friday, reflecting a 14% decline since Buffett announced his retirement in May 2025. Over the same period, the S&P 500 has risen 26%, widening the performance gap and adding pressure on Abel to deliver results.
The 0 Billion Cash Question
Berkshire's cash and U.S. Treasury holdings now exceed $370 billion, according to Abel. A portion is earmarked as a buffer for insurance needs and rare shocks, but the rest represents dry powder for potential investments or acquisitions. Abel has stated that the company still prefers owning "productive businesses over U.S. Treasuries," signaling a willingness to deploy capital when opportunities arise.
Portfolio Changes and Investor Concerns
Recent moves have drawn attention. On April 18, reports emerged that Abel sold stocks previously managed by Todd Combs, a former investment lieutenant who left Berkshire in December for a role at JPMorgan Chase. This sale is among the first visible shifts since Abel took over in January. Investors are eager for more details in Berkshire's upcoming quarterly report on May 2 and a regulatory filing due mid-May.
The role of Ted Weschler remains unclear. Chris Ballard, managing director at Check Capital Management, told Business Insider he seeks clarity on how often Abel consults Weschler and what capital allocation responsibilities he retains. This question goes to the heart of Berkshire's decision-making structure.
Operational Challenges
Berkshire's insurance arm, GEICO, faces stiff competition from State Farm and Progressive. While rate hikes have improved margins, customer retention has suffered. The company warns that rivals lowering rates could keep pressure on through 2026. In rail, BNSF Railway competes primarily with Union Pacific. Abel oversees both operations and capital decisions, managing hundreds of billions of dollars across diverse businesses.
Strategic Outlook
Abel is taking a measured approach. Berkshire's annual letter indicated that buybacks will only occur when shares trade below intrinsic value, not based on short-term price movements. Dividends remain off the table, with management believing every retained dollar should add more than a dollar to market value. High deal valuations and fierce competition for operating businesses may mean Berkshire's cash stays in Treasuries longer than some shareholders prefer.
This year's meeting will feature a new format, with NetJets CEO Adam Johnson and BNSF's Katie Farmer joining Abel onstage for Q&A. Larry Cunningham, director of the University of Delaware's Weinberg Center, called it "a new practice" he hopes will pay off. Investors are seeking details on buyback pace, deal opportunities, stock-picking responsibilities, and subsidiary independence. Buffett's stature provided Berkshire with a buffer; Abel must now build that trust publicly.
