There Are 382 Billion Reasons Why I'm Not Worried About Berkshire Hathaway After Buffett's Retirement in 2025

• Buffett handpicked Greg Abel to win him arsenic Berkshire Hathaway's CEO.

• The elephantine conglomerate has a grounds magnitude of currency connected manus today.

• Berkshire Hathaway's subsidiaries run with autonomy.

• 10 stocks we similar amended than Berkshire Hathaway ›

For 60 years, Warren Buffett was the pb antheral successful complaint astatine Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Now, the Oracle of Omaha has yet stepped down astatine the property of 95. It's decidedly the extremity of an era, but it was a large ride. Berkshire Hathaway went from a astir $25 cardinal institution to 1 of lone 11 companies with a trillion-dollar valuation (as of Jan. 13).

Understandably, immoderate investors whitethorn person reservations astir the post-Buffett epoch of Berkshire Hathaway due to the fact that of the unknown. However, determination are 382 cardinal reasons wherefore I deliberation investors should stay optimistic astir Berkshire Hathaway's absorption and semipermanent potential.

Now that Buffett has stepped aside, Greg Abel has taken implicit the reins arsenic the caller CEO. The mean capitalist whitethorn not cognize Abel by name, but he's a Berkshire Hathaway veteran, having been with the institution since 1992.

Before taking implicit arsenic CEO, Abel ran the company's vigor and non-insurance operations for galore years. Regardless of however immoderate whitethorn consciousness astir the choice, 1 happening is clear: Buffett handpicked Abel arsenic his successor, and that says a batch astir his spot successful Abel's ability.

Buffett and Berkshire Hathaway person been synonymous for rather immoderate time, but Buffett has done a bully occupation astatine making definite the company's occurrence wasn't solely reliant connected him and his decisions. If helium trusts Abel to travel him up, Abel deserves the payment of the uncertainty from investors.

At the extremity of the 3rd 4th of 2025, Berkshire Hathaway had $382 cardinal successful cash, currency equivalents, and short-term Treasury bills (T-bills). For perspective, that's much than the marketplace headdress of Robinhood Markets, Spotify, and Adobe -- combined.

Having this warfare thorax serves 2 large purposes. The archetypal is that Berkshire Hathaway is earning billions connected the $305 cardinal it holds successful T-bills without lifting a finger. Even astatine 3% (which is little than the existent rate), it could gain astir $9.15 cardinal annually successful involvement alone.

The 2nd intent is that it leaves Berkshire Hathaway with plentifulness of fiscal flexibility to leap connected an accidental if 1 pops up. Berkshire Hathaway has been known for buying oregon investing successful high-quality, but distressed, businesses erstwhile it sees a large deal. That's however it started its GEICO acquisition and began its involvement successful companies similar American Express, which it presently has a 22% involvement in.