Berkshire’s Next Act: A Comedy in Cash

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Berkshire Hathaway Future

Right, so, Warren Buffett. The Oracle of Omaha. A nice man, really. A little quiet for my taste – where’s the tuba solo, Warren? – but undeniably good with money. He’s finally hung up his hat, which, let’s be honest, was probably stuffed with dividend checks. Now, Berkshire Hathaway (BRK.A 0.03%) (BRK.B 0.01%) is in the hands of Greg Abel. And folks, I’ve seen enough corporate transitions to know this is either going to be smooth sailing or a pratfall of epic proportions. But don’t worry, your humble equity researcher (that’s me!) and part-time comedic genius (that’s also me!) are here to break it all down. And by “break it down,” I mean poke fun at it while offering legitimately insightful investment analysis. It’s a gift, really.

Buffett, in a moment of uncharacteristic exuberance (for him, anyway – a slight nod counts as a rave), declared Abel could manage his money better than anyone. Anyone! That’s a bold statement. I mean, has he seen my portfolio? Just kidding… mostly. But it does suggest Abel has the green light to shake things up. And shake things up he might. Now, I’ve been staring at spreadsheets and financial statements for longer than I care to admit, and I’m predicting two things. Two glorious, potentially lucrative things.

Buffett and Abel

A Dividend? Stop the Presses! (Or, You Know, the Algorithmic Trading Bots)

Buffett famously refused to pay a dividend. Said he could reinvest the cash better. Which, historically, he could. It was like giving a toddler a trust fund – generally a good outcome. But times change. Berkshire now has a cash pile so large, it’s practically a geological feature – $381.7 billion! That’s enough to buy several small countries, or at least a really nice yacht. Holding onto that much cash is… well, it’s like hoarding rubber chickens. Eventually, you have to do something with them. Operating cash flow is up 34% in the first nine months of 2025. So, yeah, a dividend makes sense. It’s almost… logical. Though, logic and Berkshire Hathaway have rarely been seen in the same room.

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Berkshire is in Good Hands (Hopefully, Not Clumsy Ones)

My other prediction? Buffett will eventually step down from the board entirely. He’ll probably take up competitive bird watching or something. He’s earned it. He’s already expressed immense confidence in Abel, stating Abel understands the businesses better than he does. Which is either a stroke of genius or a subtle admission that he’s been faking it all along. I’m leaning towards genius. But seriously, that’s high praise. Buffett even said Abel is a fast learner. A fast learner! In the world of high finance, that’s like saying someone is good at breathing. It should be a prerequisite!

Greg Abel has more than met the high expectations I had for him when I first thought he should be Berkshire’s next CEO. He understands many of our businesses and personnel far better than I now do, and he is a very fast learner about matters many CEOs don’t even consider. I can’t think of a CEO, a management consultant, an academic, a member of government you name it that I would select over Greg to handle your savings and mine.

What Should Investors Do? (Besides Panic)

If any of these changes cause a temporary dip in the stock price, consider it a gift. A free share or two. Abel is a seasoned operator, hand-picked by the Oracle himself. And remember Buffett’s famous Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1. It’s brilliant, really. Simple, elegant, and entirely dependent on having a lot of money to begin with. I suspect Abel will uphold that tradition. And a potential dividend? Well, that’s just gravy. Or, in Berkshire’s case, a very large pile of cash.

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2026-01-21 23:25