3 Reasons to Buy Berkshire Hathaway Stock Like There's No Tomorrow

At the end of 2025, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) underwent an important transition. Long-time CEO Warren Buffett handed the company over to successor Greg Abel. It is the biggest change to have occurred since Buffett bought Berkshire Hathaway decades ago. Here are three reasons why investors may still want to step in and buy the stock.

1. Things aren't going to change that much

Greg Abel is not Warren Buffett, so Berkshire Hathaway will be run differently in the future than it has been run in the past. There's no way around that fact. However, it's highly unlikely that Abel will make drastic changes anytime soon.

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For starters, Abel is steeped in the Buffett approach because he worked under his predecessor for decades. Abel has also been heavily involved in the company's management in recent years, as he's been the heir apparent since at least 2021. Given the success Buffett has achieved over time, it seems highly unlikely that Abel will make massive changes.

A massive change would also be difficult for Abel to make, since he'll still report to Buffett. Buffett retired as CEO, but he's staying on as the president of the board of directors. It's unlikely that Buffett will allow Abel to flounder, and he'll be available to help his successor, if needed.

2. Abel has a huge cash safety net

Having Buffett around is a big safety net for Abel. But that's not the only safety net. At the end of the third quarter of 2025, Berkshire Hathaway had $76 billion of cash on its balance sheet. In addition, the company had another $305 billion in short-term investments. That's a massive sum of money.

The cash provides a cushion in case there is a recession or a deep bear market. It gives Abel the opportunity to buy attractive companies or make capital investments in companies Berkshire Hathaway already owns.

And, perhaps less appreciated, the money would allow Abel to make some mistakes without them having too big an impact on the company's long-term performance. It's important to remember that even the Oracle of Omaha made investment mistakes. Abel will, too, but the company is well prepared to ride out any rough patches.

3. Abel is likely to take a more active role

Buffett was known for being a hands-off manager. He focused on buying attractively priced businesses he believed were well run. Then, Buffett let the management run the business, with Berkshire Hathaway benefiting from the long-term growth of the businesses he had acquired. It worked well, but at this point, Berkshire Hathaway is a massive conglomerate.

It's normal for inefficiencies to creep into large companies as they grow even larger. Buffett's approach likely let that happen to a greater extent than many investors recognize. Abel is known for being a more "hands-on" manager. He's likely to push the company's subsidiaries to operate leaner and meaner, hopefully without stepping on any toes.

Simply pressing for a little more accountability at Berkshire Hathaway could turn Abel into a winning CEO. And since he has a huge cash pile, he can back up his efforts with growth capital if it's needed. Internally driven improvement could be an exciting new phase in Berkshire Hathaway's growth that investors aren't fully appreciating.

A new Berkshire Hathaway, sort of

Berkshire Hathaway is a gigantic ship, and it can't be turned on a dime. Abel isn't even likely to try such a feat, given his long history at the company. However, given the company's cash hoard and Abel's more active management style, there could still be years of growth ahead for Berkshire Hathaway. If you've been thinking about buying the stock, the CEO handover probably shouldn't stop you from investing.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.