:max_bytes(150000):strip_icc()/GettyImages-2224528459-cae5303136d54f6aa5cb36dc2fca3c06.jpg "Berkshire Hathaway Is Set to Report Earnings Saturday, With Greg Abel’s First Shareholder Letter as CEO")
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Key Takeaways
- Berkshire Hathaway is set to release its fourth-quarter earnings and annual report Saturday.
- With the report, Greg Abel is expected to deliver his first annual shareholder letter as CEO, after Warren Buffett stepped down from the role at the end of December.
Berkshire Hathaway’s legion of loyal investors have something new to look forward to on Saturday.
The company’s annual shareholder letter, which will accompany the fourth-quarter earnings and annual report, won’t be delivered by Warren Buffett for the first time in over 60 years, after the legendary investor stepped down from the CEO role at the end of December. That duty now falls to new chief Greg Abel.
Buffett’s letters, which could run over 10 pages long and were known for their folksy tone, may be a tough act to follow. However, the practice could also give Abel an opportunity to better connect with shareholders and offer more clarity on his vision for Berkshire.
Why This Is Significant
Investors will be watching closely to see what Abel has to say and how closely he adheres to Buffett’s legacy, both in the tone and substance of his letter.
CFRA analysts, who have a neutral rating on Berkshire shares, said earlier this month that there remains a great deal of uncertainty around Abel’s leadership and concern about a long-term loss of Berkshire’s “Buffett premium” with the transition.
Berkshire’s class B shares (BRK.B) are virtually flat for 2026 so far, and remain about 7% off last May’s highs, before Buffett announced he would be leaving the CEO post. The 95-year-old Buffett still remains on Berkshire’s board and serves as chair.
“I think investors would really like to get a greater sense of who Greg Abel is and what he intends to bring to the process of managing Berkshire,” CFRA’s Cathy Seifert told Yahoo! Finance in a televised interview Thursday.
Seifert said that could include more detail on how Abel plans to deploy Berkshire’s massive cash hoard. Some of the speculation around Abel’s potential moves has also revolved around whether he could resume buybacks or take steps to introduce a dividend, which Buffett had opposed.
However, there’s also a chance he might hold off on making any bold moves, according to Seifert. “Investors should also prepare themselves for this annual letter to be an homage to Warren Buffett, and we may not learn any more about Greg Abel,” she said.
Meanwhile Buffett, who’s previously called Abel a “great talent” and successful investor who “will have ideas about where money should be invested,” has been talking up Abel’s abilities in recent months.
“I’d rather have Greg Abel handle my money than any of the top U.S. CEOs,” Buffett told CNBC in an interview last month.
