The 'cash they have is excessive': Warren Buffett's exit puts spotlight on Berkshire Hathaway's next move

Berkshire Hathaway (BRK-B, BRK-A) entered a caller epoch astatine the commencement of 2026 arsenic legendary capitalist Warren Buffett officially handed the reins arsenic CEO to his protégé, Greg Abel.

Buffett leaves down stunning realized returns of 6,100,000% implicit the past 60 years, built connected his value-investing doctrine of buying "wonderful companies astatine a just price."

The cardinal question for investors present is what Berkshire volition bash with its grounds $380 cardinal currency heap arsenic the AI roar sweeps crossed Wall Street and drives valuations higher.

"Berkshire is truthful large present that you person to find bigger opportunities to determination the needle," Bill Stone, main concern serviceman astatine Glenview Trust, told Yahoo Finance.

If it doesn't walk that cash, Berkshire could soon look unit to commencement issuing a dividend.

"As a shareholder, the magnitude of currency they person is excessive," Boyar Research president Jonathan Boyar said.

"Since Buffett is gone, and he's the top banal picker of each time, I'd similar them to deemphasize the existent banal picking and commencement paying a dividend," helium added.

Buffett and his longtime concern partner, the precocious Charlie Munger, were known for a hands-off, decentralized attack that allowed Berkshire's sprawling subsidiaries to run independently.

Those businesses span industries from railroads and vigor to security and retail, with holdings ranging from GEICO to See's Candies.

The conglomerate besides has stakes successful Apple (AAPL), a top-performing concern and, astir recently, tech elephantine Alphabet (GOOG, GOOGL).

Analysts expect Abel, a 25-year Berkshire seasoned with heavy acquisition successful the company's vigor and concern operations, to thin into that inheritance arsenic helium takes the helm.

"Under his leadership, it's apt to beryllium an important conception for the institution and, I think, investors. Given immoderate of the industrial- and energy-related demands that AI is generating, I deliberation that could beryllium an absorbing franchise to ticker wrong the Berkshire framework," CFRA Research expert Cathy Seifert told Yahoo Finance.

Abel whitethorn besides instrumentality a much hands-on attack to managing Berkshire's businesses.

"There's astir apt a batch of abdominous to cut," Boyar said. "There's astir apt divisions that could beryllium consolidated. There's galore things that ... they could bash to heighten profitability."

Glenview Trust's Bill Stone agrees.

"Could Munger and Buffett person been precise bully managers?" helium said. "They whitethorn have, they conscionable decided they don't privation to bash it. They similar to walk their clip looking for opportunities. There astir apt is, and I deliberation we've seen it already, immoderate existent accidental to adhd immoderate nonrecreational absorption and skills ... that I deliberation Greg seems to bring to the table."