Can Greg Abel Sustain Berkshire's Legacy After Buffett Steps Down?

The next year is expected to be a transitional year for Berkshire Hathaway BRK.B as Warren Buffett steps down from the position of CEO and Greg Abel assumes the role. Buffett’s departure will mark the end of an era for the conglomerate, though he will remain on the board. Greg Abel has been prepared for this role for many years. He has been overseeing Berkshire’s non-insurance operations and serving as CEO of Berkshire Hathaway Energy and vice chairman since January 2018.Berkshire’s investment thesis rests on a diversified portfolio generating resilient cash flows, a strong insurance float from GEICO and Berkshire Hathaway Reinsurance that fuels long-term compounding, and a strong balance sheet providing downside protection and opportunistic investment flexibility.Under the leadership of Warren Buffett, the company has adhered to a disciplined, value-oriented investment philosophy focused on acquiring undervalued assets with durable long-term potential.  Also, with Warren Buffett at its helm, Berkshire has been creating tremendous value for shareholders over nearly six decades with his unique skills. The remarkable success of Berkshire Hathaway is attributable to Warren Buffett and Charles Munger. Though Buffett has duly put in place a succession plan and chosen a successor, it remains to be seen how things work out when Greg Abel succeeds Warren Buffett as CEO of Berkshire, effective Jan. 1, 2026. All eyes will be on the new management of this conglomerate, whether it will be able to replicate or, at best, sustain Buffett’s success story.What About Other CEO-Founder Led Companies?Capital One Financial COF is a diversified financial services holding company with banking and non-banking subsidiaries. It has evolved to be one of the largest banks in the United States.  Richard Fairbank co-founded Capital One with Nigel Morris in 1994 and is the executive chairman of the company. Blackstone Inc. BX is the largest alternative asset manager in the world. The company’s diversified products, revenue mix and superior position in the alternative investments space are likely to continue supporting AUM growth. Stephen A. Schwarzman co-founded Blackstone with Peter Peterson in 1985 and is the executive chairman of the company.BRK.B’s Price PerformanceShares of BRK.B have gained 11.3% year to date, outperforming the industry.Image Source: Zacks Investment ResearchBRK.B’s Expensive ValuationBRK.B trades at a price-to-book value ratio of 1.55, above the industry average of 1.52. It carries a Value Score of D.Image Source: Zacks Investment ResearchNo Estimate Movement for BRK.BThe Zacks Consensus Estimate for BRK.B’s fourth-quarter 2025 EPS and first-quarter 2026 EPS witnessed no movement in the past seven days. The same holds true for 2025 and 2026 EPS estimates.Image Source: Zacks Investment ResearchThe consensus estimates for BRK.B’s 2025 and 2026 revenues indicate year-over-year increases, while the same for 2025 and 2026 EPS indicate a year-over-year decline.  BRK.B stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blackstone Inc. (BX): Free Stock Analysis Report Capital One Financial Corporation (COF): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks