1 Reason Now Is a Great Time to Buy Berkshire Hathaway Stock
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Berkshire Hathaway has just undergone a huge change, but one fact has remained constant.Berkshire Hathaway (BRK.A 0.30%)(BRK.B +0.00%) has entered a new phase of its existence. At the end of 2025, longtime Chief Executive Officer Warren Buffett handed off his job to top lieutenant, Greg Abel. Given Buffett's long and incredibly successful tenure, it is reasonable for investors to worry about the future. However, there's one very significant reason to still consider buying the stock. The big change at Berkshire Hathaway Berkshire Hathaway is an unusual company. Although its insurance operations generally leave it classified as a finance company, it is actually a widely diversified conglomerate. It is challenging to convey the company's extensive diversification, as it owned 189 subsidiary companies as of the end of 2024. Image source: Getty Images. That, however, is in keeping with Buffett's general approach. He operated Berkshire Hathaway as his investment vehicle. Buying the stock was, basically, a decision to hire Buffett to manage your money. In some ways, it operated like a mutual fund, noting that in addition to the owned companies, it also has a large portfolio of publicly traded stocks. In fact, most investors bought Berkshire Hathaway because they wanted to invest alongside Buffett. With Buffett having handed over the CEO role to Abel, however, that is no longer a reason to buy the stock. To be fair, Buffett is set to remain chairman of the board of directors, so he will still be Abel's boss. Moreover, Abel has worked for Buffett for decades, so he's well versed in the former CEO's approach. Still, Abel isn't Buffett, and the new CEO will run the company in a different manner. This is probably the largest change at Berkshire Hathaway since Buffett took control of the business, which was then a clothing manufacturer.Advertisement Why you might want to buy Berkshire Hathaway now It would be completely reasonable for investors who own Berkshire Hathaway solely because of Buffett to sell the stock. However, there is still one very large reason to buy it. You could argue that there are actually 381 billion reasons. ExpandNYSE: BRK.ABerkshire HathawayToday's Change(-0.30%) $-2240.00Current Price$748060.00Key Data PointsMarket Cap$1.1TDay's Range$744630.91 - $750000.0052wk Range$660651.01 - $812855.00Volume230Avg Vol402Gross Margin24.85% That's the number of dollars Berkshire Hathaway was holding on its balance sheet in cash or short-term investments at the end of the third quarter of 2025. With Buffett handing off a cash hoard of $381 billion, he is giving Abel a huge financial cushion. The new CEO could make a few mistakes, and the company would likely survive them quite easily. That cash also gives Abel the firepower to make growth-oriented acquisitions. It isn't clear how the new CEO intends to invest the money. Given Buffett's continuing presence at the company and Abel's training, it seems likely that Abel will continue to favor buying well-run businesses when they are trading at attractive valuations. ExpandNYSE: BRK.BBerkshire HathawayToday's Change(0.00%) $0.00Current Price$499.77Key Data PointsMarket Cap$1.1TDay's Range$496.46 - $500.1552wk Range$441.15 - $542.07Volume173KAvg Vol4.8MGross Margin24.85% There are some indications that Abel is likely to be more involved in the day-to-day operation of subsidiary companies. Even there, however, the cash hoard has material value, because the money could be used to make growth-oriented capital investments or to streamline subsidiary operations. Even in a worst-case scenario of a deep recession, the outlook is fairly positive. Berkshire Hathaway's strong financial condition would give it the ability to weather the storm relatively unscathed. In fact, a deep recession could be quite positive because it would likely create opportunities for Berkshire Hathaway to acquire other companies or shares at discounted prices. Berkshire Hathaway after Buffett When you look at Berkshire Hathaway today, you have to ask yourself why you want to own it. If the only reason you were ever interested in owning the stock was Buffett, then you probably shouldn't buy it now that he's no longer CEO. However, if the widely diversified conglomerate's business is attractive to you, then it is probably still worth considering with Abel at the helm. There is a risk that Berkshire Hathaway will be a different business now that Buffett is no longer at the helm. Still, the $381 billion in cash on the balance sheet is a good reason to give Abel the benefit of the doubt as he puts his imprint on the widely diversified conglomerate.Read NextJan 9, 2026 •By Anthony Di PizioIf This Warren Buffett Stock Plunged by 99% Today, It Would Still Have Outperformed the S&P 500 Since 1965Jan 7, 2026 •By Prosper Junior BakinyWarren Buffett's Legacy: 3 of His Favorite Stocks to Buy and Hold ForeverJan 2, 2026 •By Daniel SparksWith Warren Buffett No Longer CEO at Berkshire Hathaway, Greg Abel Will Likely Call the Shots on the Conglomerate's Biggest Investment DecisionsJan 2, 2026 •By Matt DiLallo2 Predictions for Berkshire Hathaway in 2026Dec 24, 2025 •By Stefon WaltersBerkshire Hathaway Is on Pace to Do Something It Hasn't Done Much Since 1965.
Should Investors Be Worried Heading Into 2026?Dec 18, 2025 •By Matt DiLalloBerkshire Hathaway is a Scrooge Stock.
Will It Have a Change of Heart and Start Paying Dividends in 2026?About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedBerkshire HathawayNYSE: BRK.A$748060.00 (0.00%) $2240.00Berkshire HathawayNYSE: BRK.B$499.77 (+0.00%) $+0.00*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement