Berkshire Hathaway Inc. shareholders will get their first glimpse of Greg Abel as CEO at the company's annual meeting on May 2, marking a new era after Warren Buffett's retirement. The event, held in Omaha, will feature question-and-answer sessions starting at 9:30 a.m. and 11:45 a.m. Central, with the formal meeting at 2 p.m. Buffett will attend but remain in the directors' section, stating, "Greg will be the decider."
Since Buffett's unexpected retirement announcement last May, Berkshire shares have fallen 14%, while the S&P 500 has surged 26%. Investors are eager for Abel to address this underperformance. David Kass, a finance professor at the University of Maryland who closely follows Berkshire, said he is looking for an "explanation for Berkshire underperforming the S&P 500."
A key topic is Berkshire's massive cash pile, which stood at $373.3 billion at the end of 2025. Abel has significant firepower for acquisitions, stock bets, or buybacks, but operating profit dropped 30% in the fourth quarter, and the company has not repurchased its own stock for six consecutive quarters. Investors are pressing for clarity on how Abel plans to deploy this capital.
During the meeting, Abel and insurance chief Ajit Jain will field questions in the first round. Later, Abel will be joined by BNSF Railway CEO Katie Farmer and NetJets chief Adam Johnson. CNBC's Becky Quick will curate questions from remote shareholders, while in-person attendees will be selected by random draw. Brett Gardner, author of "Buffett's Early Investments," asked whether Berkshire might buy out Buffett's stake in a negotiated transaction.
Abel's debut shareholder letter emphasized that Berkshire's decentralized structure "will not change" and reiterated a preference for owning productive businesses over Treasuries. Buybacks remain an option when shares trade below intrinsic value. However, BNSF faces scrutiny: the railroad generated $8.1 billion in net operating cash flow in 2025, but Abel called its 34.5% operating margin insufficient. A one-point improvement would add about $230 million in operating cash flow.
BNSF's rival Union Pacific posted a 59.9% adjusted operating ratio this week, with freight revenue rising 4%. Union Pacific also reiterated its plan to submit revised paperwork for its Norfolk Southern buyout, which could reshape the industry. Some analysts see value in Berkshire: UBS's Brian Meredith sees nearly 25% upside, while Chris Bloomstran of Semper Augustus Investments estimates intrinsic value is up to 21% higher than the current share price.
Despite the optimism, concerns persist about slowing revenue and operational issues at BNSF and Berkshire Hathaway Energy. With acquisition prices elevated, Abel may choose to park cash in Treasuries. However, micromanagement could undermine Berkshire's hands-off image. Chris Ballard of Check Capital Management noted that Abel's pointed remarks about Pilot "could deter such owners from approaching Berkshire in the future."
The meeting's formal agenda includes board elections and advisory pay votes, but the real test is whether shareholders leave convinced that Abel can deploy capital effectively, preserve Berkshire's culture, and maintain its identity without Buffett on stage.
