At the end of 2025, Warren Buffett retired as CEO of Berkshire Hathaway after six decades at the helm, leaving behind one of the most successful track records in corporate history. Under his leadership, Berkshire’s stock portfolio generated an average annualized return of nearly 20%, effectively doubling the S&P 500’s 10% average annual return over the same 60-year period. Buffett’s departure raises questions about succession and whether his chosen successors can sustain the conglomerate’s disciplined, long-term investment approach that has delivered compounded gains for shareholders through multiple market cycles.

Over the last three years, Berkshire Hathaway has been a net seller of equities, with the value of disposals exceeding new purchases as the S&P 500’s forward price-to-earnings multiple climbed from roughly 15.5x in late 2022 to more than 22x by early 2026. This sustained net selling underscores Buffett’s contrarian philosophy, avoiding what he views as richly valued markets. During that period Berkshire reduced positions in consumer discretionary names and trimmed other holdings, while building its cash position to record levels. Investors will be watching whether incoming management maintains this conservative posture in the face of historically high market valuations.