Here's What $1,000 Invested in Berkshire Hathaway the Day Greg Abel Became CEO Is Worth Now
2026-09-02 10:05
•Patrick Sanders •The Motley Fool
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Berkshire Hathaway Stalls Under Greg Abel
Since the CEO handover, Berkshire’s famed growth engine has stalled with little to show for investor patience.
Warren Buffett built Berkshire Hathaway into a powerhouse delivering close to 20% annual returns. Now, under Greg Abel, the stock barely budged—$1,000 invested at Abel’s start is just $1,005 today. That’s a shock for anyone counting on Buffett-style compounding. The company’s cash pile is massive, and Q2 earnings were decent, but the engine seems stalled. For South African investors, this highlights an important lesson: stewardship matters, especially for long-term compounders. While local giants like Naspers or MTN evolve, they still rely heavily on visionary leadership. If Abel can’t find a new growth catalyst soon, Berkshire might stay flat or worse. Also, a stronger USD against the ZAR (currently about 19.30) could dampen returns for those converting back locally. If the global economy picks up or Abel lands a big acquisition, things could turn around. Until then, better opportunities exist here at home in banks like FirstRand or resource plays like AngloGold Ashanti that offer more tangible drivers. this is just our opinion and not financial advice
Avoid adding to Berkshire Hathaway now and watch how Abel manages growth. Meanwhile, consider increasing exposure to SA banks like FirstRand and gold miners given their stronger local linkages and clearer upside.
- BRK.B
- USD/ZAR
- FSR
- ANG
- Abel executes a successful turnaround or acquisition
- Rand weakens significantly, affecting translation of foreign earnings
6/10
Since Greg Abel took over as CEO of Berkshire Hathaway at the end of 2025, the stock has been essentially flat, with a $1,000 investment worth only $1,005 today. This marks a stark contrast to Warren Buffett's legacy of 19.7% average annual returns. Despite solid Q2 earnings and a strong cash position of $365.5 billion, Berkshire is on track for its worst performance in over a decade.
Our take is based on reporting first published by The Motley Fool.