From Omaha Sage to Successor: Greg Abel Takes Over the New Chapter of Berkshire Hathaway

Warren Buffett’s era has officially come to an end. The legendary investor who led Berkshire Hathaway for over 60 years will hand over the CEO position to Greg Abel on Wednesday. Buffett, known as the Sage of Omaha, stepping down will bring a new phase to the entire financial market.

Numbers Reveal the Influence of the Sage of Omaha

Currently, the market is experiencing an unprecedented surge. The Buffett Indicator—an index dividing the total market capitalization by US GDP—has reached a record high of 221.4%, climbing 22% since April 30. This is the largest increase since the statistics began in 1970. Such overheating in stock prices can be seen as a reflection of the speculative fever caused by the AI boom in 2025.

To illustrate the impressive investment philosophy of the Sage of Omaha with numbers: if you had invested $1 million in the S&P 500 from 1957 to 2007, it would have grown to $166 million, whereas Buffett generated $81 billion over the same period. Furthermore, adding the past 18 years, his portfolio has ballooned to an astonishing $428 billion.

Entering the Era with Greg Abel at the Helm

After years of succession planning, Greg Abel now takes the reins of Berkshire Hathaway. Buffett has instructed that the company’s management philosophy be carried over unchanged, and the core principles of management explained by his son Howard Buffett last year—“keeping promises to be fulfilled on time, maintaining integrity, and taking responsibility if failures occur”—will be upheld under Greg’s leadership.

Berkshire’s investment strategy will continue. The approach of buying strong companies, remaining calm during market panics, and avoiding statements without data remains the Sage of Omaha’s way. The current portfolio still heavily features Apple, Amazon, and Alphabet. Buffett has maintained a quiet approach, riding trends while generating profits even in the AI era.

Market Impact and Uncertainty in the Succession Era

With the Sage of Omaha gone, the question looming over the entire financial industry is clear: will a person who can watch over the market and make judgments like Warren truly emerge? He was compared to Einstein, Edison, and even Mozart. The sense of security and trust his investment decisions provided to the financial markets will likely be lost in the short term.

Berkshire has adhered to a consistent philosophy of cautious disregard for trends such as Virginia Northan’s acquisition, ignoring cryptocurrencies, and continuing to hold Apple shares as if they were national treasures. Whether the continuation of this robust investment strategy will ensure stability under the new leadership is a key concern for the market.

With Buffett’s departure, certainty has been lost. The market faces an unpredictable future regarding what results Greg Abel’s leadership will bring. The 60-year history of the Sage of Omaha is coming to an end, and a new chapter for Berkshire Hathaway is about to begin.