Warren Buffett's legendary run as CEO of Berkshire Hathaway (BRK.A 0.33%) (BRK.B 0.34%) has left a permanent mark on the company and the world of investing. His sage advice has undoubtedly helped many investors accumulate wealth and achieve financial independence.
Buffett stepped away from the CEO role this year and expressed his complete confidence and support for new CEO Greg Abel. In a recent CNBC interview, Buffett said he'd "rather have Greg handling my money than any of the top investment advisors or any of the top CEOs in the United States."
That implies Abel has the power and backing to make changes he sees fit at Berkshire. Here are two changes that might be coming this year.
Image source: The Motley Fool.
A dividend makes sense
Buffett famously refused to pay a dividend, but that doesn't mean he dislikes them. Buffett's reasoning was sound. He believed that Berkshire shareholders would be better rewarded if excess cash were put to work to grow the company and generate even more cash. Buffett also favored returning cash to shareholders through share repurchases when he felt Berkshire stock was at a reasonable valuation. His 60-year track record certainly supported his positions.
Buffett never shied away from investing, and sometimes taking large positions, in companies that do pay dividends, however. Berkshire's top 10 holdings as of Sept. 30 recently averaged a 2.17% dividend yield. Now that the company's consistent cash flow has built a record-breaking cash pile of $381.7 billion, it's a good time to initiate a dividend. Cash from operating activities soared 34% in the first nine months of 2025, offering a clear indicator that it is doing well and should continue to flow and support dividend payments.
NYSE: BRK.A
Key Data Points
Berkshire is in good hands
My other prediction is that Buffett will feel comfortable enough with the transition that he will step down from the board of directors and fully retire. It made sense for him to remain the chairman of the board when he made the announcement. There may even be potential deals he'd like to stay involved in. But Buffett has expressed immense confidence in Abel. In his Thanksgiving message, Buffett stated the following:
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?
If any changes lead to a sell-off in the stock, I would see it as a good opportunity for investors to add to their Berkshire shares. Abel is a seasoned operator and leader, and Buffett's hand-picked successor.
One of Buffett's famous quotes is: "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1." I believe Abel will guide investors to achieve that goal with Berkshire stock, and added income from any potential dividend will only help.
