Let’s talk about Berkshire Hathaway and a name that is instantly brought to mind: Warren Buffett.
The story is actually pretty remarkable when you think about it.
Buffett took over what was basically a struggling textile company in 1965 and transformed it into one of the greatest wealth‑creation machines in history.
Just how legendary?
If you had invested $1,000 in Berkshire back then and simply held on, it would have grown to roughly $56 million by the end of 2025. That works out to a compound annual return of about 19.9%, nearly double the S&P 500’s ~10.4% annualized return over the same period (including dividends). In total, Berkshire delivered an eye-popping ~5.5 million percent cumulative return, compared to roughly 39,000% for the S&P 500.
Not bad for a company that started out making shirts and blankets, right?
Even looking more recently, from the end of 1987 to now (just a couple of months after the infamous Black Monday crash), Berkshire is up about 25,122%, while the S&P 500 Total Return Index is up around 6,058%. That’s more than three times the performance over nearly four decades.
Buffett’s strategy was simple in principle but extraordinary in execution.
He bought companies with durable competitive advantages, competent management, and predictable earnings. Investments like Coca-Cola, American Express, and Apple were not chosen for quick gains. They were chosen for their long-term potential. Warren Buffett’s patience and his willingness to ignore market fads allowed Berkshire to compound wealth steadily, creating a model that investors studied and admired for decades.
Recently, though, Berkshire has faced a new reality. Some of its more traditional holdings haven’t kept pace with rapidly growing sectors like technology, and at times performance has lagged the broader indices. Coupled with Buffett’s announcement that he will step down, it’s understandable why investors are asking: What does Berkshire look like without Buffett?
Enter Greg Abel, Buffett’s successor, who has now taken the reins.
Abel has decades of experience at Berkshire, most notably running the company’s energy operations. He is widely respected for his operational skills and strategic insight. Still, running one business unit is very different from leading the entire conglomerate.
Investors are watching closely to see whether Berkshire Hathaway will continue following Warren Buffett’s tried and true principles or gradually adapts to new priorities.
What’s my guess?
Abel may bring subtle shifts in approach, but the core philosophy of disciplined, long-term investing is unlikely to disappear.
One question many investors have is whether Berkshire will begin paying dividends under Abel’s leadership. Buffett famously avoided dividends, preferring to reinvest earnings into internal growth and acquisitions. With the company now holding a massive cash reserve, the idea of a dividend has become a recurring topic of speculation. Any move in that direction would signal a shift in philosophy, though likely one made carefully to balance growth with shareholder returns.
The transition marks the end of an era and the start of a new chapter. Berkshire’s foundation, built on decades of rational decision-making and disciplined investing remains strong. Abel inherits a company with deep expertise, a culture rooted in long-term thinking, and a commitment to creating true value. The next few years will show how much of Berkshire’s historical trajectory can be sustained and where new opportunities might emerge under different leadership.
Berkshire Hathaway without Warren Buffett will certainly feel different.
But the story is far from over.
The company faces challenges, yes, but it also has the chance to redefine itself while staying true to the principles that made it extraordinary in the first place.
Investors may see a different Berkshire, but it remains a company built on the enduring power of disciplined decision-making, long-term perspective, and the pursuit of meaningful growth.
It’s rare that we get to witness such a clear passing of the torch in real time where history, leadership, and strategy converge.
So as Berkshire Hathaway steps into a new era, what do you believe its next chapter will look like? And how might the principles that shaped its past inspire the future?
