Berkshire Hathaway, the U.S. investment conglomerate, saw its shares drift lower early in 2026 as it entered a post-Buffett era as CEO Greg Abel took up leadership reins.

In the first trading days of the year, on U.S. stock exchanges, investors reassessed long-term strategy, and how the transition may shape capital allocation decisions.

After Warren Buffett handed control to Abel, the company’s Class A and Class B shares edged down modestly, reflecting investor caution amid leadership turnover at one of the most storied investment houses.

Analysts say that while the transition was widely anticipated, markets are adjusting to the reality of a post-Buffett leadership, given his longstanding reputation for value investing and deal-making acumen.

Buffett remains chairman and has indicated continued involvement, but investors scrutinised early moves and capital deployment strategies under Abel’s stewardship.

Berkshire’s large cash reserves and reduced exposure to some legacy holdings have sparked debate about future acquisition targets and returns. Some strategists see the transition as a shift toward a more diversified corporate governance style.

Despite the slight stock pullback, long-term holders emphasise Berkshire’s diversified portfolio — including insurers, railroads, energy firms and consumer brands — as a buffer against short-term leadership concerns.

The company’s balance sheet strength and cash position remain key factors in valuation discussions.

Meanwhile, the broader conglomerate group continues to evaluate opportunities in sectors tied to infrastructure, industrial services and niche consumer markets. Management has signalled that acquisition discipline will remain a cornerstone of strategy.

For global investors, Berkshire’s performance in early 2026 will be watched as a barometer of confidence in transition periods for large, diversified firms, particularly those closely associated with iconic founders.

Source: Reuters.