Warren Buffett: "Greg's My Top Choice for Managing My Money Over Top Advisors and CEOs"

Warren Buffett's Strongest Endorsement for New CEO

Warren Buffett, the legendary investor and chairman of Berkshire Hathaway, has given a rare personal endorsement to Greg Abel, who officially became President and CEO of the company on January 1, 2026. This marks the first leadership transition at the top of the company since 1965, and Buffett's praise of Abel as a "perfect 10" signals his highest level of confidence in the new leadership.

Abel's appointment comes at a critical time for Berkshire Hathaway. While the company has maintained its disciplined approach to investing and capital allocation, it has trailed the S&P 500 by 38% over the past year. Despite this, Berkshire continues to trade at a reasonable 14x trailing P/E ratio, with an intact $380 billion cash position and a return to buyback activity.

Who Is Greg Abel?

Greg Abel was born in Edmonton in 1962 and earned a Bachelor of Commerce in accounting from the University of Alberta in 1984. He began his career at PwC before joining CalEnergy in 1992. Abel played a key role in the Northern Electric acquisition in 1996 and later became CEO of Berkshire Hathaway Energy in 2008. He served as Chairman of the division from 2011 to 2018 and was appointed Vice Chairman of Non-Insurance operations in 2018.

His background includes a strong financial discipline as a CPA, a team-player mentality from his days playing hockey, and 25 years of experience within Buffett’s orbit. These qualities have positioned him well for the challenges ahead.

Skin in the Game

Buffett's trust in Abel is not just rhetorical. Abel has demonstrated his commitment by investing heavily in Berkshire stock. In June 2022, he sold his 1% stake in Berkshire Hathaway Energy (BHE) for approximately $870 million and reinvested the proceeds into Berkshire Class A shares. In early 2026, he also returned his entire $15.3 million after-tax salary back into the company. SEC filings show that Abel acquired 21 Class A shares on March 4, 2026, in a price range of $725,210 to $733,300. His net worth and shareholder outcomes are now closely aligned.

Capital Allocation Continuity

The Q2 2026 results, filed on May 7, showed operating earnings of $11.35 billion, up from $9.64 billion a year earlier. The company also maintained a record $380 billion cash position. In March 2026, Abel authorized roughly $234 million in buybacks, marking the first repurchase in 21 months. This move came after the price-to-book ratio dipped to 1.4, showcasing disciplined capital allocation.

Abel now oversees about 94% of Berkshire's $327 billion equity portfolio following Todd Combs’s exit in December 2025. The portfolio is concentrated around major holdings such as Apple, Coca-Cola, American Express, and Moody's. Investors should review the full 8-K exhibit for more details.

Time Will Tell

Berkshire is currently in a testing phase. As of the latest data, BRK-B is down 5.48% year to date and 8.32% over the past year, while the SPY ETF is up 7.28% YTD and 30.37% over one year. The market is re-pricing the Buffett premium, but the stock still trades at a trailing P/E of 14 with a beta of 0.622. Analyst targets sit at $520.33, compared to a current quote of $475.08.

Abel's management style is more granular, confrontational with underperformers, and tech-forward than Buffett's. However, the core strengths of the company—its fortress balance sheet, decentralized operating model, and float-driven capital base—remain intact. Buffett’s endorsement is a strong signal, and the buybacks, cash pile, and Abel’s reinvested salary provide further evidence of his commitment.

Retirement Planning Made Simple

Retirement planning can be daunting, but it doesn’t have to be. Imagine having an expert in your corner to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter.

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.