Can Berkshire Hathaway Keep Beating the S&P Without Warren Buffett?

With Warren Buffett finally giving us a date when he’ll be handing over the torch to his successor, Greg Abel, questions linger as to whether Berkshire Hathaway (NYSE:BRK-B) will be as much of a market-beater under a new CEO. Undoubtedly, Abel has earned the confidence of Berkshire shareholders. He’s the right man for the job, and he’s been trained by the best for quite a while now.

That said, there can only be one Warren Buffett. And while some folks may speculate that it’s Abel and not Buffett who’ve been running the show for a while, I still think the profound value that the Oracle of Omaha brings to the table cannot be underestimated. He’s an investment legend who’s still sharp at 94. And though he’ll no longer be CEO next year, he will still be around, likely chiming in on investment opportunities should they come around. 

“I would still hang around and conceivably be useful in a few cases, but the final word would be what Greg said,” Buffett said at the 2025 Berkshire Hathaway annual meeting.

Warren Buffett will still be hanging around after Abel becomes CEO

If a stock market crash were to happen under the Abel era, I’m sure Buffett will finally have a big chance to step up to bat. Buffett knows as well as anyone that the truly magnificent buying opportunities only come around every so often, though.

Whether we’re talking about the 2008 market crash or the 2020 COVID sell-off, it’s the response (or lack thereof) to truly nail-biting sell-offs that separates seasoned investment legends from everyone else. Until such an opportunity happens, Buffett seems fine with allowing Abel, who’s an exceptional operator, to be that top guy.

In any case, the trillion-dollar question remains whether Berkshire can continue to perform in the post-Buffett era. Personally, I think Berkshire is in some very good hands. And while I wouldn’t hesitate to buy Berkshire with Abel at the helm, I do think it’s worth coming to terms with what Berkshire loses as Buffett departs the CEO’s office after his incredible 60-year run.

Can Berkshire keep performing in the age of Abel and AI? 

Undoubtedly, it’s hard to tell what will be in the cards for Berkshire as the company’s second-ever CEO steps in. Ultimately, I think it depends on how well Berkshire can adapt in the AI age and what Abel will end up doing with the $350 billion cash pile. Indeed, Abel will be judged based on how well Berkshire’s first big deal performs under his reign. As such, I think Abel, like Buffett, is in no rush to spend the cash.

During the 2025 shareholders meeting, Abel referred to the cash position as a “strategic asset” and said that Berkshire’s “fortress” balance sheet was what allowed it to weather truly horrific economic storms. He’s right. And that’s the exact kind of response I’d expect Buffett would have given. Though nobody knows when Abel will put the cash pile to work, he said that he’ll “deploy it well” when the time comes.

For long-term shareholders, that has to be music to their ears. Abel has been taught well. As such, I’d prefer owning an Abel-led Berkshire than the S&P 500 for the next 10-25 years. Of course, time will tell if Berkshire can outpace the U.S. stock market as AI becomes more impactful.

As for Berkshire in the age of AI, Abel says Berkshire is taking a “wait and see” approach, but suggested Berkshire will be ready to commit when it makes sense.

The bottom line

It’s impossible to know if Berkshire can outpace the S&P 500 in the era of Abel and AI. With exceptional stewardship who are poised to act in accordance with Buffett’s teachings, I’m inclined to believe Buffett’s aura of excellence will not be gone once he is. In short, I think Berkshire is well-positioned for the road ahead, however windy that road may be as the fourth industrial revolution kicks off.

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