At the end of 2025, Warren Buffett stepped down as CEO of Berkshire Hathaway (BRK.A), concluding a 60-year tenure during which the company’s stock portfolio delivered an annualized return of nearly 20%, effectively doubling the S&P 500’s 10% average. His departure was accompanied by a detailed succession plan naming Greg Abel as chief executive of non-insurance operations and Ajit Jain as head of insurance, ensuring continuity across Berkshire’s diverse holdings. Investors are closely monitoring how the new leadership will uphold Buffett’s disciplined capital allocation philosophy across the conglomerate’s $950 billion portfolio.

During 2024 and 2025, Berkshire Hathaway executed a series of notable trades under Buffett’s direction. In Q2 2024, the firm acquired approximately 690,000 shares of Ulta Beauty, representing 0.1% of its equity portfolio, only to divest nearly its entire position by Q4 2024. Had the stake been retained through 2025, Berkshire would have enjoyed a roughly 40% appreciation, marking one of its best-performing assets that year. Conversely, midway through 2025, Berkshire initiated a new position in Alphabet, aligning with the tech giant’s 65% stock gain driven by AI advancements and legal victories. These moves reflect a willingness to cut losses quickly while seizing emerging opportunities—even in sectors Buffett had historically shunned.

As of Q3 2025, Berkshire Hathaway maintained a record cash balance exceeding $175 billion, underscoring Buffett’s caution amid elevated market valuations. Over the three-year span ending 2025, the conglomerate was a net seller of equities, deploying capital selectively into rail operator BNSF, energy grid player Dominion, and continued expansion of its insurance float. Despite refraining from large-scale buybacks, Berkshire returned $12.5 billion to shareholders through preferred stock dividends in 2025, while retaining ample liquidity to capitalize on potential market dislocations under the new leadership regime.