Is Berkshire Hathaway Stock a Buy Near Its All-Time High?

For years, investors wondered what would happen to Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) when longtime CEO Warren Buffett stepped down. It was assumed that a Buffett premium was being applied to the stock, given the CEO's impressive track record as an investor. At first, that was true, with the stock falling on the news of his pending departure at the end of 2025. But as 2026 draws to a close, the market's view appears to be changing. And even with the stock now near an all-time high, it could still be worth buying. Here's why.

Buffett is gone, and successor Abel hasn't changed much

The big worry was that Buffett was the key to Berkshire Hathaway's success. Obviously, Buffett's investment approach helped to build the company, but it is a very different business now than it was when Buffett first took over as CEO. Today, Berkshire Hathaway is a massively diversified conglomerate, with businesses in insurance, utilities, energy, transportation, housing, retail, and manufacturing, among others.

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At a time when investors are worried about the market, Berkshire Hathaway's diversification and focus on fairly simple-to-understand cash-generating businesses provide something of a safe haven. In fact, investors are increasingly worried about the high-tech companies that have driven the market higher, as many are increasingly leaning on their balance sheets to fund growth. To be fair, Berkshire Hathaway has some exposure to technology companies in its stock portfolio, but its operating businesses tend to be much more down-to-earth. And, just as important, new CEO Greg Abel hasn't done anything to compromise the basic nature of Berkshire Hathaway.

That said, the balance sheet is another big safety point. At the end of the second quarter, Berkshire Hathaway had more than $350 billion in cash and short-term investments on its balance sheet. That will provide the company with a material cushion in a bear market. And it will also give Abel the firepower to step in and buy while others are fearful during that bear market. That's something Warren Buffett was famous for, and he likely taught his successor the value of both patience and contrarian thinking.

Long-term investors should still consider Berkshire Hathaway

There has been a huge change at Berkshire Hathaway with Buffett stepping aside. But roughly 10 months into Greg Abel's tenure, investors are clearly getting more comfortable with the change. And with Wall Street increasingly worried about the tech sector, Berkshire Hathaway's more mundane business profile and huge cash hoard make it look like an attractive alternative for those seeking out a safe-haven investment. Indeed, even with the stock near its all-time highs, it may be worth buying for those who think long term, like Abel and, before him, Buffett.

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.