For the first time in 60 years, Warren Buffett will not be the main attraction at Berkshire Hathaway Inc.'s (NYSE:BRK) (NYSE:BRK) annual meeting. As new CEO Greg Abel takes the reins this weekend, he faces mounting pressure to address a historic $373 billion cash pile and a lagging stock.
The Post-Buffett Reality
While thousands of investors are making the pilgrimage to Omaha for its annual shareholders meeting, the mood is noticeably different. Berkshire shares have severely underperformed since Buffett unexpectedly announced his departure last year on May 3.
Largely on a year-over-year basis, BRK’s stock fell 11.19%, while the S&P 500 was up 29.5% in the same period.
Some investors may want to see Greg “prove himself in his job” before they decide to buy more, Lawrence Cunningham, a University of Delaware governance professor, told Reuters. Cunningham was confident, but the market is “expressing caution.”
After pausing the repurchase program since May 2024, Abel resumed stock buybacks in March—Berkshire’s first since May 2024.
The $373 Billion Dilemma
Abel’s most pressing challenge is the unprecedented cash hoard, which ended 2025 at $373 billion. Aside from a $9.5 billion Occidental Petroleum Corp. (NYSE:OXY) acquisition in January, Berkshire has avoided major purchases for a decade.
Paul Lountzis, president of Lountzis Asset Management, also told Reuters that deploying this capital will “play a pivotal role in Berkshire’s future.” He added that many of Berkshire’s businesses are predictable. But the huge market capitalization makes it much harder for BRK to grow.
A Changing Of The Guard
The meeting’s format is significantly shifting. Abel will give a one-hour solo presentation before fielding questions with other executives, replacing the legendary philosophical dialogues Buffett shared with the late Charlie Munger.
This corporate shift is already impacting attendance, with hotel reservations dipping slightly and fewer international travelers arriving, according to Reuters.
BRK Underperforms S&P 500 In 2026
Shares of BRK’s class B shares have declined by 5.78% year-to-date, whereas the S&P 500 has advanced over 5% in the same period. The stock closed 0.37% lower at $473.60 apiece on Thursday, and it was up 0.20% in premarket on Friday.
Over the last month, BRK was down 0.22% and lower by 1.035 over the last six months. Benzinga’s Edge Stock Rankings indicate that BRK-B maintains a weak price trend in the short, medium, and long terms, with a poor quality score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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