Greg Abel Takes Helm at Berkshire in 2026 Amid $9.8 Billion Valuation Gaps

- Growing investor concerns over accounting practices and asset discrepancies - Leadership transition scheduled for January 1, 2026 Greg Abel will become CEO of Berkshire Hathaway on January 1, 2026. He succeeds Warren Buffett, who is stepping down after decades of leadership. On July 23, 2025, Cryptopolitan reported on the company's transitional hurdles. A key issue is a $9.8 billion discrepancy between internal valuations and market prices for its major holdings, Kraft Heinz and Occidental Petroleum. As Abel takes over, investors will likely intensify their scrutiny of Berkshire's unique accounting methods, corporate governance, and asset valuation gaps. As of March 31, 2025, Berkshire valued its 27% stake in Kraft Heinz at $13.5 billion, while the market valued it at only $9.9 billion. That market value later declined to $9.4 billion, widening the discrepancy to $4.1 billion. Berkshire uses the equity method to value Kraft Heinz, basing the figure on earnings rather than stock prices. While legal, this is an uncommon approach for publicly traded stocks. A similar gap exists for its 28% stake in Occidental Petroleum, where Berkshire's internal valuation is $17.2 billion, but its market price is $13.1 billion. The leadership shift coincides with Warren Buffett, age 94, transitioning out of the CEO role at the end of 2025, though he will remain chairman. Berkshire’s board unanimously approved Abel's succession, which Buffett first confirmed in May 2021. Abel has served as vice chairman of non-insurance operations since 2018 and will now assume full responsibility for capital allocation, a role Buffett reinforced at the company’s 2025 annual meeting. Abel will also inherit challenges tied to Berkshire’s unique corporate structure. The company omits earnings calls and financial guidance, practices widely accepted because of Buffett’s decades-long reputation. Governance experts note this system relies heavily on Buffett’s influence and must adapt to center on the company and its new leadership. Berkshire’s board requires its directors to have integrity, business acumen, and a significant personal investment in the enterprise. Another pressing issue for Abel is managing Berkshire’s substantial cash reserve, which reached a record $347.7 billion in 2025. The company’s lack of stock buybacks in the first half of 2025 has fueled investor skepticism, as this absence suggests Buffett believed Berkshire shares were too expensive at their current valuations. Since Buffett announced the succession on May 3, 2025, Berkshire’s stock has underperformed the S&P 500.