Warren Buffett to step down from Berkshire Hathaway, Who is new SEO ?

Warren Buffett to step down from Berkshire Hathaway, Who is new SEO ? 

Warren Buffett's Berkshire Hathaway has named its Vice Chairman Greg Abel as the next CEO of the company as the ace investor stepped aside from his role.

Abel's appointment will be effective from January 1, 2026, Berkshire Hathaway said in a statement.

Warren Buffett will step aside as the CEO but will continue with his role as chairman of the board of the $1.16 trillion conglomerate.

The board of directors at the cash-rich conglomerate voted on Sunday to keep the legendary 94-year-old investor as head of the board. The board in the same meeting also approved Buffett’s chosen successor as CEO, veteran Berkshire executive Greg Abel.

Who is Greg Abel?

Before Buffett disclosed his plan, Abel, who was unaware of the move, told attendees at the annual meeting he would be "more active, but hopefully in a very positive way", in overseeing Berkshire subsidiaries, though they would continue running "very autonomously".

Abel, a Canadian, has long been among the close aides of Warren Buffett. Greg Abel lives two hours away from Warren Buffett in Des Moines Iowa. He is likely to stay there.

Since 2018 he has held charge of BNSF, Berkshire's railroad company, food brands Dairy Queen and See's Candies, and other manufacturing and retail businesses.

Berkshire shares take a hit

Shares of Berkshire Hathaway fell 2.8 per cent before the bell on Monday after the ace investor announced his retirement, Reuters reported.

Shareholders said it remains unclear how the holding company's 189 operating businesses, $264 billion of stocks and $347.7 billion of cash will fare after the man so involved with it leaves the stage.

follow thefundfortress.blogspot.com. for more updates.

How Warren Buffett Safeguarded His Wealth with a Record Cash Reserve Pre-Stock Market Crash

 How Warren Buffett Safeguarded His Wealth with a Record Cash Reserve Pre-Stock Market Crash

Warren Buffett's Berkshire Hathaway recently faced significant losses as the stock market experienced a sharp downturn. Despite this, Buffett's strategic decision to build substantial cash reserves has played a crucial role in mitigating these losses. This article explores how Buffett's foresight in amassing cash reserves helped protect Berkshire Hathaway during this volatile period.

Berkshire Hathaway's Portfolio Hit by Market Declines

On Monday, Berkshire Hathaway's stock portfolio was hit hard as major holdings like Apple, Bank of America, and Mitsubishi experienced sharp declines. The global stock market sell-off resulted in losses worth approximately $15 billion for Berkshire Hathaway. The company's market capitalization fell by over 3%, bringing it down to $899 billion. Significant stakes in Japanese companies such as Mitsui, Marubeni, and Sumitomo, along with American Express, Moody's, and Kraft Heinz, also saw declines, wiping out hundreds of millions of dollars.

Record Cash Reserves: A Strategic Move

In the last quarter, Berkshire Hathaway reported record cash reserves of $277 billion, largely due to a $76 billion stock sale. This decision to reduce stock market positions and accumulate cash was a deliberate strategy by Warren Buffett to prepare for market volatility amid growing concerns over a potential US recession. Buffett's cautious approach paid off, as these cash reserves provided a buffer against the recent market turmoil.

Impact on Major Holdings

1. Apple Decision

   • Apple, one of Buffett's largest investments, saw its share price drop by more than 7%, resulting in a $5.7 billion loss for Berkshire Hathaway. Buffett's decision to sell nearly half of his Apple stocks indicated his concern about the tech giant's future performance. This move was part of a broader strategy to reduce exposure to tech stocks, which also included declines in other major tech companies like Alphabet, Amazon, Meta, Microsoft, Nvidia, and Tesla.

2. Bank of America and Mitsubishi

   • Bank of America and Mitsubishi, other significant holdings for Berkshire Hathaway, also experienced sharp declines. The reduced valuation of these companies contributed to the overall loss in Berkshire's portfolio.

3. Japanese Holdings

   • The stakes in Japanese companies Mitsui, Marubeni, and Sumitomo faced similar downturns, affecting Berkshire's international investments.

4. Other Major Investments

   • Declines in holdings such as American Express, Moody's, and Kraft Heinz further exacerbated the losses, highlighting the widespread impact of the market sell-off.

Conclusion

Warren Buffett's strategic foresight in building record cash reserves proved to be a crucial defensive measure during the recent stock market crash. By reducing exposure to vulnerable stocks and amassing substantial cash, Buffett was able to safeguard Berkshire Hathaway's wealth to a significant extent. This approach not only mitigated immediate losses but also positioned the company to capitalize on future opportunities in a volatile market environment.