Greg Abel Era At Berkshire Links New Bets With Valuation Questions
- Finance
ThePostMaster- 0
- 8 minutes read
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Greg Abel has officially taken over as CEO of Berkshire Hathaway, succeeding Warren Buffett in the first leadership transition in decades.
Under Abel, Berkshire has made a large new investment in Alphabet and taken a more active role in key holdings, including supporting Kraft Heinz’s decision to pause its planned separation.
These moves could indicate a shift in Berkshire’s investment priorities and how the conglomerate manages its major positions.
Berkshire Hathaway, NYSE:BRK.A, now trades at about $751,424.99 per share, reflecting its status as one of the highest priced stocks in the market. Over the past 3 years, the stock shows a 63.9% return and over 5 years the return is 102.5%, which gives useful context as investors consider what this leadership handover might mean. Against that backdrop, Greg Abel is stepping into a role that has long been closely associated with Warren Buffett’s capital allocation approach.
For investors, the early signals from Abel, including the Alphabet investment and involvement in the Kraft Heinz separation pause, raise questions about how Berkshire may position its portfolio over time. As more of his decisions come through, you will have additional data points to assess how the company’s direction under NYSE:BRK.A’s new CEO compares with its long established playbook.
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Does the team leading Berkshire Hathaway have what it takes? See our full breakdown of the management team’s track record and compensation.
⚖️ Price vs Analyst Target: The current price of $751,424.99 sits about 1.9% below the analyst target of $765,476.25, which is within a fairly tight range.
✅ Simply Wall St Valuation: Shares are described as trading at 40.4% below an estimated fair value, which is a meaningful discount.
✅ Recent Momentum: A 30 day return of 1.44% shows the stock has edged higher recently.
There is only one way to know the right time to buy, sell or hold Berkshire Hathaway. Head to Simply Wall St’s company report for the latest analysis of Berkshire Hathaway’s Fair Value.
📊 Greg Abel taking over, along with moves like the Alphabet position and Kraft Heinz decision, may slowly reshape how Berkshire allocates capital across sectors.
📊 Watch how the P/E of 16.0 versus the industry average of 15.8, the 18.1% net margin versus the 14.4% industry margin, and any further large portfolio shifts evolve under the new CEO.
⚠️ One key risk flagged is that earnings are forecast to decline by an average of 0.2% per year over the next 3 years, which could influence how much flexibility Abel has for new investments.
