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Reuben Gregg Brewer, The Motley Fool
Sat, May 16, 2026 astatine 9:35 AM CDT 4 min read
Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) is an iconic sanction connected Wall Street acknowledgment to the unthinkable concern show of Warren Buffett. Now that Buffett has stepped down arsenic CEO, however, investors request to ticker caller CEO Greg Abel to spot however good helium volition capable Buffett's shoes.
While it is improbable anyone volition ever regenerate Buffett, Abel received precocious marks successful his archetypal solo stint astatine the conglomerate's yearly meeting. That said, helium wasn't arsenic humorous, according to immoderate attendees. Most investors tin astir apt unrecorded with that, since the truly important question is what helium volition bash arsenic the CEO. The archetypal large reply is bargain 1 of Buffett's favourite stocks.
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Berkshire Hathaway has a monolithic currency heap
Buffett gave Abel a large helping manus erstwhile helium near the caller CEO a $373 cardinal currency hoard. That fig has since grown to $397 cardinal aft conscionable a azygous quarter. That currency volition beryllium a cushion for the fiscal elephantine if determination is simply a recession oregon carnivore market, apt allowing it to easy sail done immoderate adversity that comes along.
However, that currency is besides a resistance connected the company's performance. It is apt that Abel could gain higher returns if that wealth were invested. To beryllium fair, Berkshire Hathaway is collecting involvement from the cash, astir of which is invested successful U.S. Treasury Bills. But investors don't bargain Berkshire Hathaway expecting the institution to gain interest. Berkshire Hathaway's agelong and palmy past of buying publically traded stocks and full companies is the large draw.
Thus, the large question is what volition Abel bash with each of that cash? Right now, helium appears mostly contented to simply beryllium connected currency due to the fact that neither helium nor Buffett has been capable to find large concern opportunities. And yet, the caller CEO of Berkshire Hathaway is taking 1 notable action: He is buying banal successful Berkshire Hathaway.
Warren Buffett's favourite banal
At the extremity of 2025, Warren Buffett owned 38.4% of Berkshire Hathaway's Class A shares and 30.2% of its Class B shares. He is by acold the company's largest shareholder. It is just to suggest that the institution helium erstwhile led arsenic CEO is his favourite stock. But Buffett was cautious astir buying backmost the company's shares portion helium was CEO.
Buffett would lone repurchase Berkshire Hathaway shares erstwhile helium believed the banal was trading beneath its intrinsic value. Abel has taken Buffett's pb connected this, consulting the erstwhile CEO and present committee president earlier making his last decision. That said, immoderate of the currency connected Berkshire's equilibrium expanse is going to beryllium utilized to bargain Berkshire Hathaway stock.
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