OMAHA, Nebraska: One of corporate America's most closely watched handovers begins this week as Berkshire Hathaway transitions leadership from its iconic architect, Warren Buffett, to longtime lieutenant Greg Abel.

Buffett, widely regarded as the world's greatest investor, built Berkshire from a struggling New England textile mill he began buying in 1962 at US$7.60 a share into a sprawling conglomerate whose Class A shares now trade above $750,000. Even after giving away more than $60 billion over two decades, Buffett's Berkshire stake is worth roughly $150 billion.

For years, Berkshire routinely beat the S&P 500 as Buffett assembled a portfolio spanning insurers such as Geico and National Indemnity; manufacturers like Iscar Metalworking; consumer brands including Dairy Queen; major utilities; and one of the nation's largest railroads, BNSF. He also made famously patient stock bets—American Express, Coca-Cola, and Apple among them—buying and selling hundreds of billions of dollars' worth of equities along the way.

Recently, Berkshire's sheer size has made it harder to sustain that outperformance or land needle-moving acquisitions. Even this fall's $9.7 billion purchase of OxyChem is unlikely to materially shift profits. Investors will be watching closely for any change in trajectory—but few expect abrupt turns.

Buffett isn't disappearing. He will remain chairman, continue coming to the office, and help spot investments while advising Abel when asked. Abel has already overseen all non-insurance operations since 2018.

CFRA Research analyst Cathy Seifert said it's natural for Abel to make adjustments as he takes complete control of a company with nearly 400,000 employees across dozens of subsidiaries. Still, Berkshire's famously decentralized structure—granting broad autonomy to managers—remains intact, and everyone involved says that won't change.

The succession became official in 2021, when Buffett's late partner Charlie Munger assured shareholders that Abel would preserve Berkshire's culture. That promise has long been central to Buffett's pitch to founders selling their businesses: keep running them as before, as long as results follow.

"I think the investment community would likely applaud Greg's management style to the degree that it sort of buttons things up," Seifert said. "And if it helps performance, that can't really be faulted."

Abel is more hands-on than Buffett, pressing leaders with tough questions while still honoring autonomy. Earlier this month, after investment manager and Geico CEO Todd Combs departed and CFO Marc Hamburg announced his retirement, Abel named NetJets CEO Adam Johnson to oversee consumer, service, and retail businesses—creating a third division and easing Abel's load. Abel will continue managing manufacturing, utilities, and rail.

Pressure may eventually build to return more cash to shareholders. Berkshire has long favored reinvestment over dividends. But with $382 billion in cash, investors could push for dividends or broader buybacks if compelling uses for the money don't emerge. For now, that pressure is muted: Buffett controls nearly 30 percent of voting power, which will gradually diminish as his children donate shares to charity.

Many Berkshire units track the economy and thrive in good times. Utilities deliver steady profits, and insurers like Geico and General Reinsurance generate more than $175 billion in premiums that can be invested until claims are paid.

Chris Ballard, managing director at Check Capital, said most Berkshire businesses "can almost take care of themselves," and he remains optimistic under Abel. Leadership questions linger—Ajit Jain, the insurance vice chairman Buffett praises often, is 74, and many subsidiary CEOs work well past typical retirement age—but investors appear calm.

"As a long-term shareholder, we aren't too concerned with Todd's departure and don't think this is the tip of some sort of iceberg," Ballard said. "Todd's situation is unique. It's just a reminder that Warren's pending departure is imminent and they're preparing for a new phase — one that we're still excited to see unfold.