Berkshire after Buffett: Abel on $397bn cash, 2026

A first annual meeting without Buffett at the helm

Berkshire Hathaway’s first annual meeting under CEO Greg Abel put succession at the centre of the conversation, as shareholders weighed how the firm will behave in a post-Warren Buffett era. Abel, 63, spoke in Omaha, Nebraska, four months after succeeding Buffett as chief executive. Buffett, 95, remains chairman and appeared alongside Abel during the weekend. Business Times (BT) reported Abel’s effort to reassure investors that Berkshire’s culture and capital allocation discipline will not change abruptly. The shift matters because Berkshire is a US$1,020 billion conglomerate that has historically relied on patient investing and decentralised operations.

Abel’s message: patience, decentralisation, no break-up

Abel told shareholders that Berkshire “hates bureaucracy” and that the group does not intend to be beholden to anyone. He also said he would not break up Berkshire, arguing the structure works effectively and the company’s bench of expertise is strong. Abel said he is constantly evaluating opportunities to add to Berkshire’s portfolio, including buying public companies, private companies, or partial stakes. The emphasis was on a long-term approach rather than chasing market trends. That stance was directed at investors increasingly focused on technology and artificial intelligence rather than Berkshire’s mix of insurance, retail and hard-asset businesses.

Buffett backs Abel, and warns about speculative behaviour

Buffett told the audience that Abel is doing “everything I did and then some,” echoing comments he made in 2025 when he announced he would step down as CEO. He also praised Apple and departing chief executive Tim Cook, highlighting the importance of Berkshire’s long-held positions. Separately, Buffett said some investors have adopted a gambling mentality. He warned that while investing is not “terrible,” prices for many assets could end up looking “awfully silly.”

Record cash becomes the key shareholder question

Berkshire’s cash and cash-equivalent assets climbed to a record US$197.0 billion in the first quarter of 2026, according to earnings disclosures cited in multiple reports. BT also reported cash of US$180.2 billion at end-March, reflecting how different summaries refer to cash versus broader cash and equivalents. Either way, the numbers underline the same point: Berkshire is sitting on a historically large liquidity buffer. Abel’s central challenge is to deploy capital without compromising underwriting discipline in insurance or overpaying for acquisitions.

Why the cash rose: net equity selling and limited deployment

The cash build was linked to Berkshire being a net seller of equities during the quarter. Reports said Berkshire net sold about US$1.1 billion to US$1.2 billion of stocks in the period, extending a long streak of net sales, described in one account as 14 consecutive quarters. Management’s reluctance to rush into deals also contributed, even as investors continued to focus on the opportunity cost of holding cash.

Q1 performance: operating profit up, net income more than doubles

Berkshire reported first-quarter operating profit of US$11.35 billion, up 18% year on year, helped by improved results in its insurance businesses. The prior-year period included losses tied to southern California wildfires. Net income attributable to shareholders rose to about US$10.10 billion from US$1.60 billion a year earlier. Operating earnings were reported as below an estimate of US$11.56 billion cited by FactSet.

Business conditions: retail pressure, insurance competition, and tariffs

Management flagged uneven conditions across operating businesses. Several retail operations struggled amid uncertain economic conditions and lower consumer confidence. Some large businesses, including the BNSF railroad, posted higher profit, but the overall picture remained mixed. Abel said the insurance sector still faces competitive headwinds even after the quarter’s improved performance. Tariffs were another operational issue, with Abel saying Berkshire businesses have “a lot to sort out” when collecting refunds. BNSF chief executive Katie Farmer said customers still face uncertainty despite having “adapted and adjusted” to higher tariffs.

Buybacks resume after a long pause

Berkshire repurchased about US$1.2342 billion of its own shares in the first quarter, the first buybacks since May 2024. The repurchases were noted as a sign Berkshire saw some value in its own stock, even while retaining a very large cash position. The buyback figure also reinforced that management is still prioritising flexibility over large-scale payouts.

Governance vote and legal backdrop: employees and PacifiCorp

At the end of the meeting, shareholders overwhelmingly rejected a proposal to publish a report on how Berkshire oversees more than 387,000 employees across nearly 200 businesses. On the legal front, Abel welcomed a recent Oregon appeals court ruling that, for now, reduced the risk that Berkshire’s PacifiCorp unit would face billions of dollars in liabilities tied to 2020 wildfires that the utility maintains it did not cause. Abel said the company is “back to first base” legally, indicating the immediate threat has eased.

Market context: Berkshire shares trail since the succession signal

Berkshire’s shares have lagged the S&P 500 by 39 percentage points since Buffett announced at the 2025 annual meeting that he would step down as CEO. That comparison has sharpened attention on capital deployment and whether Berkshire can maintain its reputation for disciplined compounding as markets reward faster-growing themes.

Key numbers at a glance

Why this matters for investors

Abel’s comments signalled that Berkshire intends to preserve its decentralised model and long-term capital allocation approach, even under new leadership. The record cash pile raises a practical question for shareholders: whether discipline will mean waiting longer for attractive prices, or whether opportunities will emerge to deploy capital at scale. The quarter’s results show the insurance operations can rebound after catastrophe losses, but management also highlighted competitive pressures that can compress returns. With buybacks restarting at a modest pace and equities being trimmed on a net basis, Berkshire’s near-term posture remains cautious.

Conclusion

Greg Abel’s first annual meeting as CEO focused on continuity: low bureaucracy, patience, and keeping Berkshire intact. Financially, the quarter reinforced that message through record cash of about US$197 billion, modest buybacks of US$1.2342 billion, and operating profit of US$11.35 billion. The next signals investors are likely to watch are future quarters’ capital deployment decisions and any updates on major acquisitions, buybacks, or material legal and tariff-related developments.