By Krystal Hur

Berkshire Hathaway's new chief executive laid out a vision for the conglomerate that signaled he would stick with what worked for his predecessor, Warren Buffett.

"Berkshire's culture and values form the basis of our operating framework, which shapes the strategy we pursue and the choices we make as we build Berkshire," Greg Abel wrote in his first letter to shareholders. "As CEO, the framework governs how I lead every day."

Abel reiterated the many virtues that made the company unusual, and unusually successful, during Buffett's long run: a decentralized model that gives its business managers autonomy, a vast stock portfolio overseen by the CEO, a reliably profitable insurance empire and a reluctance to buy back Berkshire shares or offer a cash dividend.

"Berkshire is a unique conglomerate, intentionally designed to allocate capital rationally and efficiently," Abel wrote. "We are committed to strengthening the great legacy built by Warren Buffett and his business partner Charlie Munger, ensuring it endures through our commitment to excellence."

Abel also confirmed to shareholders that Buffett is still involved in Berkshire's operations, writing that the Oracle of Omaha is in the office five days a week and available to consult on matters from underwriting insurance to dealmaking. But Abel also made clear that he was now fully serving as Berkshire's top executive, overseeing not only the company's many businesses but also its stock portfolio.

"At Berkshire, equity investments are fundamental to our capital allocation activities; responsibility ultimately resides with me as CEO, " wrote Abel.

Abel said that investment manager Ted Weschler is responsible for about 6% of Berkshire's portfolio, including a portion that was overseen by Todd Combs, another investment manager, who recently decamped to JPMorgan Chase.

Berkshire reported a 2.5% drop in quarterly profit after the company earned less from its insurance operations.

Net income fell to $19.2 billion, or $13,349 per Class A share equivalent, from $19.69 billion, or $13,695 per Class A share, in the year-earlier period.

Berkshire ended 2025 with a record $373.1 billion in cash and Treasury bills after accounting for a payable for purchasing some of the short-term government debt, a 4% increase from three months earlier. The company refrained from repurchasing any of its own shares during the quarter, marking the sixth-straight period in which it didn't buy back any stock.

"Many times in Berkshire's history, some observers have suggested that our substantial cash position signals a retreat from investing. It does not," Abel wrote.

Buffett, 95, unveiled plans in May to hand off his role as Berkshire's longtime CEO to Abel at year-end. The company synonymous with Buffett's corporate stewardship and savvy investing stepped into a new era in January with Abel's ascendance.

"Warren," Abel wrote in the letter, " is obviously a very hard act to follow."

In laying out the agenda for this year's annual meeting, Abel confirmed one notable change: Buffett won't be on stage. The first of two question-and-answer sessions with investors will feature Abel and Ajit Jain, the head of Berkshire's insurance powerhouse. The second will feature BNSF Chief Executive Katie Farmer and Adam Johnson, Berkshire's newly appointed president of consumer products, service and retailing businesses.

Operating earnings, which exclude some investment results, fell 30% to $10.2 billion from $14.53 billion. Profits from insurance underwriting and investment income declined, while Berkshire reported higher earnings from its BNSF railroad operations and its manufacturing, service and retailing businesses.

Buffett has said that operating earnings are the better measure of the company's performance. Accounting rules require Berkshire to include unrealized gains and losses from its giant investment portfolio when it reports net income, meaning that short-term fluctuations in the stock market can cause big swings in quarterly income.

Berkshire's Class A shares reached a record high of $809,350 on May 2, right before Buffett announced he was stepping down as CEO. The shares have since dropped 6.5%, closing Friday at $757,000. In that same period, the S&P 500 index rose 21%.

For the year, Berkshire was a net seller of stocks.

Write to Krystal Hur at krystal.hur@wsj.com

(END) Dow Jones Newswires

February 28, 2026 09:38 ET (14:38 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.