Buffett leaves, and Berkshire investors waste no time reacting

thestreet.com•January 3, 2026•general

Key Points:

Warren Buffett officially stepped down as CEO of Berkshire Hathaway on January 1, 2026, ending nearly 60 years of leadership and handing over the role to Greg Abel, while remaining chairman.
Berkshire’s stock experienced a modest decline on Abel’s first day, continuing a downward trend since Buffett announced his retirement plans, reflecting investor concerns about the transition and a "succession discount."
Analysts emphasize that Abel inherits a cash-rich conglomerate with over $350 billion in cash, and his ability to allocate capital effectively will be crucial in maintaining investor confidence and driving future returns.
The market's reaction signals a shift from the "Buffett premium" to a valuation focused on operational efficiency and long-term strategic execution under Abel’s leadership.
Investors