Berkshire Hathaway (BRK.A 0.46%)(BRK.B 0.34%) made a big change at the end of 2025. Longtime CEO and famous investor Warren Buffett handed over the leadership reins to Greg Abel. That means that the next earnings update, expected to occur at the end of February, will be the first time investors get to hear about Abel's plans for the future.
It probably won't be a very exciting update ... but it could be.
Abel is already making changes
Not long after taking the top job at Berkshire Hathaway, news came out that Greg Abel was planning to sell Kraft Heinz (KHC 3.50%) stock. Kraft Heinz is one of the largest public investments in Berkshire Hathaway's portfolio, with Buffett actually having helped to support the merger of the two companies back in 2015. On the surface, that looks like a dramatic change in approach, but it really isn't.
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Buffett himself has said that investing in consumer staples icon Kraft Heinz was probably a mistake. In summary, he ran afoul of his mentor Benjamin Graham's advice that paying too much for a good company can turn it into a bad investment. He's also opined that the pending split of the company into two businesses again doesn't really solve the problems facing the combined entity. So in some ways, Abel is just acting on Buffett's already negative views. And at this point, there's no clear timeline on any sale, if one materializes.
However, what the headline-grabbing Kraft Heinz news highlights is important. Abel is expected to be a more active CEO than Buffett, who generally took a hands-off approach to both the businesses Berkshire Hathaway owned and the stocks in which it invested.
The next earnings call probably won't be a shocker
It's already clear that Abel will be a different CEO from Buffett, but that was inherent in the transition. The real question is, how different? The answer is likely to be much less different than many investors may fear.
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Key Data Points
For starters, Abel has worked for Buffett for decades. He is well-versed in Buffett's investment approach and management style. Given that Abel has been the clear heir apparent for years, it's likely he's been involved in many of the company's recent decisions. This isn't a situation in which an outsider is being brought in to fix something that's broken. The expectation is that Abel will keep things humming along.
Notably, Buffett isn't gone and forgotten. He's remaining on as the chairman of the board of directors, and that means he's still Abel's boss. It also means Abel can still consult with the Oracle of Omaha as he makes business decisions. Buffett will probably continue to take his typical hands-off approach, but it's unlikely he'll sit back silently if he believes Abel is about to make a big mistake.
Don't forget the cash cushion
There's another safety valve here. Berkshire Hathaway ended the third quarter of 2025 with more than $380 billion of cash and short-term investments on its balance sheet. Selling Kraft Heinz shares will only add to the cash hoard. That money gives Abel the leeway to make a few mistakes as he learns the ropes.
If you're looking at Berkshire Hathaway today, buying before the next earnings update probably shouldn't be a big concern. In fact, the cash Abel is sitting on could be the foundation for the next chapter of Berkshire Hathaway's growth, as it could be used to invest in the business or to make acquisitions. In other words, the next earnings update could turn into an exciting discussion of the opportunities ahead for Berkshire Hathaway.
