Berkshire Hathaway: Is the Stock Still a Safe Buy Without Warren Buffett?
2026-10-26 22:26
•David Jagielski, Cpa •The Motley Fool
• ••••••• Axe Cap view
Berkshire Hathaway After Buffett: Time to Wait
New CEO Greg Abel is steering Berkshire into riskier tech waters, making this a moment for caution.
Berkshire Hathaway has always been a sanctuary for investors looking for steady, value-driven returns under Warren Buffett's steady hand. With Greg Abel now at the helm and Buffett stepping back, we see a clear shift. The newfound appetite for tech stocks like Alphabet and a surprising bet on Bending Spoons signals a bolder, riskier approach. While the stock has gained 9% this year, that performance masks increased portfolio volatility and uncertainty about the firm's future direction. For South African investors, this raises a red flag, especially given the rand’s sensitivity to global risk sentiment. A stronger USD/ZAR often weighs on earnings for JSE companies with international exposure, underscoring why timing matters. If Berkshire stumbles, expect some spillover pressure on local counters that track global tech, such as Naspers and Prosus. We’d rather watch from the sidelines for now until Abel proves his mettle in these uncharted waters. this is just our opinion and not financial advice
Avoid jumping into Berkshire Hathaway shares immediately; hold off until there’s more clarity on Abel’s risk appetite and strategy. Instead, keep an eye on USD/ZAR volatility and JSE tech-linked stocks like Naspers for better entry points.
- BRK.B
- USD/ZAR
- Naspers
- Prosus
- New CEO’s strategy may outperform expectations
- Rand strength could cushion JSE tech stocks despite global shocks
7/10
Greg Abel has taken over as CEO of Berkshire Hathaway, with Warren Buffett stepping down as chairman. While the stock has risen 9% this year, concerns are emerging about increased tech exposure and portfolio risk under new leadership. Recent moves like investing in Alphabet and Bending Spoons suggest a shift toward higher-risk tech investments, prompting analysts to recommend a wait-and-see approach.
Our take is based on reporting first published by The Motley Fool.