Berkshire’s Shuffle: Abel, Weschler & the Art of Not Picking Stocks

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Right. So, everyone’s been having a little flutter about who’s actually steering the ship at Berkshire Hathaway now that Warren’s… well, let’s just say he’s opted for a more comfortable captain’s chair. $308 billion is a lot of money to just hand over, isn’t it? Makes you wonder if they drew straws. The official line is Greg Abel, naturally. But the whispers… oh, the whispers are much more interesting.

For years, Buffett brought in Todd Combs and Ted Weschler, two hedge fund guys, presumably to sprinkle some magic dust on Berkshire’s portfolio. A bit like bringing in a specialist to fix a leaky faucet when you’re perfectly capable of getting water everywhere yourself. Combs is gone now, vanished into the ether. I figured Weschler would be the one holding the reins, you know, the stock-picking brain. Turns out, I was wrong. And honestly? I’m not even that surprised. Being right all the time is… exhausting.

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So, Abel’s Got All the Toys?

Abel’s first letter to shareholders was… thorough. Like, really thorough. He went through the businesses with a level of detail Buffett usually reserved for explaining his bridge hands. Which, let’s be honest, is probably a good thing. Everyone assumed Abel would focus on the operating businesses – the stuff Berkshire actually owns – and let Weschler handle the portfolio. Naive of me, I suppose. The letter made it brutally clear: Abel’s in charge of the money. All of it. Or, 94% of it, to be precise. Weschler gets a measly 6% and a pat on the head. It’s… a power move. A very quiet, corporate power move. And I respect it. Slightly.

At Berkshire, equity investments are fundamental to our capital allocation activities; responsibility ultimately resides with me as CEO. Ted Weschler manages about 6% of our investments, including a portion of the portfolio formerly overseen by Todd Combs. Ted’s impact extends beyond these investments, as he continues to play a broader role in assessing significant opportunities, providing valuable input on our businesses, and supporting Berkshire in various other ways.

Look, Weschler will still be consulted, obviously. But to think he’d be given a significant chunk of the portfolio after years of quietly building a reputation? Unlikely. It’s a bit like expecting the stage manager to suddenly take over the lead role. They know where everything is, sure, but can they deliver? That’s the question, isn’t it?

Abel: The Man Who Never Picked a Stock

Here’s the kicker. Abel’s background isn’t in stock picking. He’s an accountant. A consultant. A utility guy. He climbed the corporate ladder at CalEnergy, then MidAmerican, then… Berkshire. It’s a perfectly respectable career path, obviously. But it doesn’t exactly scream “hedge fund wizard.” Buffett clearly saw something in him, some kind of operational brilliance. But handing him the keys to a $308 billion portfolio? It feels… bold. Or maybe just pragmatic. Sometimes, you just need someone who can keep the trains running on time, even if they have no idea where the tracks are leading.

Is Berkshire About to Abandon Stocks Altogether?

Let’s be real. Berkshire hasn’t made a truly significant stock bet in ages. Apple was the last big splash, back in 2016. Everything since then has been either oil giants – a strategic hedge, let’s not pretend it’s anything more – or smaller plays within their existing industries. Insurance, energy… comfortable territory. They’ve been much more interested in buying whole companies. Alleghany, Pilot Travel Centers, OxyChem… it’s a pattern. They’re building an empire, one acquisition at a time. And honestly? It makes sense. Why bother with the volatility of the stock market when you can just own the whole damn thing?

It’s like this: I’d rather own the casino than try to win at roulette. Less stressful, more predictable. And, frankly, more lucrative in the long run.

Good or Bad for Shareholders?

Look, Berkshire isn’t a hedge fund. It’s an operating business that happens to have a lot of cash. Buffett used his stock-picking skills to boost returns, sure. But Abel’s appointment suggests a shift towards more acquisitions, more consolidation. Less speculation, more stability. It’s… boring. But boring can be good. Especially in a world that’s constantly trying to set itself on fire.

Weschler is still around, so they won’t completely abandon stocks. And who knows? Maybe Abel will make a brilliant, unexpected stock pick. But I wouldn’t hold my breath. After all, as Warren himself said, “I am a better investor because I am a businessman, and a better businessman because I am an investor.” It’s a lovely sentiment. But sometimes, the best investment is simply knowing when to walk away from the table.

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2026-03-22 12:04