Buffett retires, the Eberl system officially launches... Berkshire Hathaway's "century-old enterprise" challenge begins

Berkshire Hathaway’s management rights have officially been transferred from founder Warren Buffett to Vice Chairman Greg Abel, and the outside world is increasingly paying attention to the company’s future direction. Since its founding 60 years ago, the company has firmly established itself as a leading investment enterprise in the United States, making its leadership transition highly scrutinized in terms of sustainability.

Warren Buffett has previously announced plans to retire by the end of 2025 and has handed over the CEO title to his successor, Greg Abel, starting January 1 of this year. However, he has decided to retain the position of Chairman of the Board, which means that although he is officially stepping back from frontline management, he will continue to serve as a strategic advisor. The investment community is closely watching how much influence the so-called “investment mentor” Buffett will have on the company’s operations.

Recently, Buffett expressed confidence in an interview with CNBC: “I believe Berkshire is more likely to still exist a hundred years from now than any other company I can think of.” He emphasized, “I believe Abel can manage my funds better than any top investment advisor in the United States,” demonstrating his trust in his successor. This has been interpreted as a message of confidence in the new leadership to organizational members and investors.

Berkshire Hathaway was originally a struggling textile company. Since its acquisition in 1965, it has achieved sustained growth through investments in insurance, railroads, energy, consumer goods, and other sectors. For decades, the company has adhered to the philosophy of “value investing,” pursuing steady long-term investments. Its stock price has increased approximately 6.1 million times over 60 years. As of September 2023, Berkshire’s cash and cash equivalents amounted to about $381.7 billion (approximately 552 trillion KRW), and its stock assets held about $283.2 billion (approximately 410 trillion KRW).

The market generally believes that for a large-scale investment holding company like Berkshire, CEO succession is not a strategic shift but a natural generational handover to maintain sustainability. Abel had already begun managing core operations several years ago and has gained management experience under Buffett’s guidance, who emphasizes financial stability and consistency with the investment philosophy.

This trend may serve as a positive signal for investors. As the company strengthens its systematic management structure and reduces reliance on individual capabilities, it is expected to help maintain trust from long-term global investment funds. However, given Warren Buffett’s profound influence, it will take time for Abel’s leadership to be independently evaluated.