Will Howie Buffett Keep Berkshire Ahead of the S&P 500? What Retail Investors Need to Know

Warren Buffett has stepped down as chairman of Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK), handing the position to his son, Howie Buffett. As the $1.091 trillion conglomerate completes its leadership transition, retail investors are weighing whether the company can keep beating the S&P 500.

BRK.B Versus S&P 500

Berkshire Class B shares have generated an 84.19% return over the past five years, outperforming the S&P 500 tracker, State Street SPDR S&P 500 ETF Trust (NYSE:SPY) 72.56% gain. However, short-term performance has lagged, with the stock up 1.42% year-to-date compared to SPY’s 11.70% rise.

‘Uncharted Territory’

Howard Buffett, also known as Howie, 71, assumes the role after serving on the board for 33 years. Finance Professor David Kass observed on social media that the transition ushers in a new era and puts the conglomerate in “uncharted territory.”

Buffett, 96, will remain on the board as chairman emeritus. In his shareholder letter, the billionaire investor accepted the limits of aging, writing, “Father Time always wins.”

He also clarified the corporate structure: “Greg runs the company; Howard will guard its culture and values – both worth more than anything on our balance sheet.” Buffett further described his son as “a policy the shareholders own and hope never to claim against.”

Berkshire Reshapes Portfolio Under Abel

Greg Abel, who took over as CEO at the end of 2025, is actively reshaping the portfolio. Berkshire’s latest 13F filing revealed a 58% reduction in its Capital One Financial Corp. (NYSE:COF) stake.

Conversely, the company expanded its holdings in Alphabet Inc. Class C (NASDAQ:GOOG) by 658%, making the tech giant a top-three investment. Berkshire also initiated a small new position in D.R. Horton Inc. (NYSE:DHI) while fully exiting Constellation Brands Inc. (NYSE:STZ).

Institutional Moves and Index Fund Strategy

As Berkshire enters its next chapter, institutional holders are adjusting. The Gates Foundation Trust recently cut its Berkshire position by 14%, shifting $800 million into Home Depot Inc. (NYSE:HD) and FedEx Freight Holding Company Inc. (NYSE:FDXF).

For retail investors, Warren Buffett’s long-standing advice remains relevant. Buffett has repeatedly recommended low-cost S&P 500 index funds for investors who don’t want to select individual stocks, such as the Vanguard S&P 500 ETF (NYSE:VOO), over active stock picking.

Investors must now decide if Berkshire’s cultural safeguards and new capital strategies will continue to outpace the broader market.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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