Subject: Re: Hopes, for Greg’s first letter?
From my brokers newsletter:

DJ Berkshire's New CEO Delivers His First Shareholder Letter Soon. Wall Street Is Watching. -- Barrons.com


Andrew Bary

The inaugural shareholder letter from Berkshire Hathaway CEO Greg Abel is due on Saturday, along with Berkshire's annual report and fourth-quarter earnings. Wall Street will be on alert for Abel's insights on key issues such as dividends and stock repurchases.

Abel, 63, became CEO at year-end when Warren Buffett retired from the job after 60 years at the helm. Abel was Buffett's handpicked successor and had overseen the company's vast non-insurance operating units for nearly eight years before becoming CEO.

Buffett, 95, remains chairman, is the company's controlling shareholder and has said he plans to be at Berkshire's Omaha offices daily this year.

Buffett struck a folksy, conversational tone with his eagerly anticipated annual letters, which generally have run 10 to 15 pages. So it will be interesting to see the tone, substance, and length of Abel's missive.

Abel hasn't said much so far about what he plans to do as CEO.

CFRA analyst Cathy Seifert says Berkshire investors would like to get to know him better in addition to hearing about issues such as stock buybacks.

"How much will Greg inject his personality into the letter?" Seifert asked. "My concern is that people may be looking for too much in the letter. He's a close-to-vest, buttoned-up kind of guy. Expectations should be kept in check from what we've seen of him."

Buffett has commented that Abel plays a more active role in managing the company's dozens of operating subsidiaries than Buffett did.

Abel has spoken at Berkshire's annual meetings and given detailed answers to questions about topics such as Berkshire's utility and railroad subsidiaries. Abel likely will elaborate on topics addressed in his letter -- and much more -- at Berkshire's annual meeting in early May.

Expect Abel to pay tribute in the letter to Buffett and the extraordinary company he built over six decades. Investors, however, will be focused on the future and those comments will probably be the most consequential.

The letter could boost Berkshire's stock if Abel signals an intention to pay a dividend and if he says Berkshire plans to be a large buyer of its stock -- or if the company resumed share repurchases in the fourth quarter.

Buffett has opposed a dividend, saying cash is better in his hands than in those of Berkshire holders. Many Berkshire holders agree, not wanting to pay taxes on any payouts.

The thinking among some Berkshire watchers is a dividend will eventually be paid at Berkshire, but it may not come until after Buffett's death.

If a dividend comes sooner, perhaps as early as this year, it likely would be favorably viewed in the investment community despite the opposition from some die-hard Berkshire shareholders. It would show the company is returning more cash to holders rather than hoarding it. Berkshire could comfortably support a 2% dividend, which could help the stock by attracting new investors -- retail and institutional.

There is pressure to return more cash to Berkshire holders because its cash pile has more than doubled over the past two years. It totaled over $350 billion on Sept. 30, about a third of the company's market value of $1.1 trillion. Berkshire has far more cash than any other American company.

Buffett has been willing to sit on the cash while awaiting investment opportunities. Wall Street may be less patient with Abel if he indicates Berkshire will continue that practice.

Berkshire stock rose 10.9% in 2025, trailing the S&P 500 index by about seven percentage points. The Class A shares, at around $748,000, are up less than 1% this year and are roughly in line with the S&P 500.

Bill Stone, the chief investment officer at Glenview Trust, notes Berkshire provides on its website a detailed presentation on the company's utility and energy unit -- Berkshire Hathaway Energy (BHE) -- that Abel formerly headed.

"I'd love to see him give a similar state of the union of Berkshire Hathaway and an update on all the major business units," he told Barron's.

On capital allocation, Seifert says Berkshire should set a buyback authorization of a reasonable size even if there is no current activity. Some think Berkshire ought to consider a tender offer for its stock that could retire $50 billion or more in a single transaction. Berkshire stock now trades around 1.5 times its projected year-end 2025 book value. That's in line with the average valuation in recent years. The stock was similarly valued in 2024 when the company was buying back stock.

Buffett decided on whether to buy back stock when he was CEO. It's unclear where Abel is being given the same authority or whether Buffett and the Berkshire board of directors are involved in repurchase decisions.

Buffett has overseen Berkshire's $300 billion equity portfolio and managed about 90% of it with investment managers Ted Weschler and Todd Combs handling the other 10%. Berkshire hasn't said anything specific about how things work now.

Weschler probably is playing a key role now that Combs has left for JPMorgan Chase, but nothing has been formalized. Abel's day-to-day role with the portfolio is unclear, and whether he is actively managing it or simply overseeing it. Then there is a larger issue of Berkshire's long-term plans for the equity investments and whether Berkshire plans to de-emphasize stock picking with Buffett no longer running the portfolio and the company seeing limited new investment opportunities in the stock market.

Abel may also talk about his approach to acquisitions and whether he will focus on potential deals in his wheelhouse -- utilities and energy -- or cast a wider net.

Abel personally owns over $170 million of Berkshire stock, largely A shares purchased in 2022 and 2023. Does he plan to buy more? He likely has the wherewithal, having sold a 1% stake in BHE back to the company for $870 million in cash during 2022. Buffett has over 99% of his wealth in Berkshire stock now worth around $145 billion. Abel's exposure to Berkshire stock as a percentage of his wealth is likely much lower. Berkshire doesn't give equity compensation to any employees, meaning Abel has to buy stock in the open market if he wants to own more.

Abel may also address how long Berkshire insurance chief Ajit Jain, 74, will continue to run that critical part of the company and who are potential successors.

Abel is taking the top job at an age -- 63 -- when many CEOs are on their way out. So it will be notable if he comments on its potential tenure as CEO. He may also highlight the next generation of leaders at Berkshire. Buffett has said the usual rules of executive retirement -- leaving at 65 -- don't apply at Berkshire.

Berkshire isn't just any company. It has a huge investor base totaling about three million with many passionate holders. It also has created significant wealth for longtime investors.

There is much for Abel to tackle in the letter and he likely won't get to everything. But it should make for a fascinating read as his first major communication with Berkshire investors.

Write to Andrew Bary at andrew.bary@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.


(END) Dow Jones Newswires

February 23, 2026 15:43 ET (20:43 GMT)