Discipline

Thought-provoking...

Big transition at Berkshire Hathaway — From the Buffet Era to the Abel Era

This week marks a historic moment — Greg Abel has officially taken over as CEO of Berkshire Hathaway as of January 1, 2026. This transition closes one of the most extraordinary leadership chapters in corporate history while opening a new one with both continuity and fresh expectations.

Illustration from Shah Investor's Home Ltd (Data Source Berkshire Hathaway Performance (1996-2026) and Mint article)

The Buffett Legacy — A Golden Era of Long-Term Growth

Under Warren Buffett’s nearly six decades at the helm, Berkshire Hathaway became synonymous with disciplined value investing, capital allocation excellence, and long-term shareholder compounding. The results speak for themselves:

• From 1965 to 2024, Berkshire’s shares appreciated roughly 5,502,284%, dwarfing the 39,054% return of the S&P 500 (with dividends reinvested) over the same period.

• This translates to a compounded annual growth rate (CAGR) of ~19.9%, nearly double the ~10.4% CAGR of the S&P 500 benchmark.

• Over different time frames — from 10-year to multi-decade horizons — Berkshire’s performance consistently rewarded patient, long-term shareholders.

These results weren’t built overnight — they were driven by Buffett’s investment philosophy, prioritizing high-quality businesses, patient capital, and a culture of decentralized operational leadership.

What This Means for Greg Abel and the Future

Image by BeingGuru

Greg Abel now steps into a role with an extraordinary legacy to uphold and evolving expectations to meet. As CEO, Abel needs to:

• Maintain Berkshire’s core capital allocation discipline — continue prioritizing high ROIC (return on invested capital) opportunities while protecting downside risk.

• Energize growth avenues while honoring conservatism — identifying new value opportunities in an increasingly dynamic global economy.

• Communicate strategic vision to markets and shareholders — clarity and consistency will be essential to reinforce confidence post-transition.

Critically, Abel inherits a cash-rich balance sheet and diversified operating portfolio — powerful tools if deployed wisely in a strategic, valuation-conscious way.

In Summary

Warren Buffett leaves behind a legacy built on decades of superior compounding, often outpacing the broader market by wide margins. Now, Greg Abel’s leadership will be defined by how he balances that time-tested philosophy with the need to adapt for the future.

Image by Being Guru

Here’s to the next chapter — one that builds on enduring principles while seeking new horizons for growth.

Wisdom/ What I'm Reading...

Discipline Is a Leadership Advantage

Haruki Murakami wakes up at 4:00 AM, writes for hours, then runs 10 KM. Every day. For decades.

Not because it’s extreme — but because it’s deliberate.

Murakami doesn’t wait for inspiration. He builds a structure so strong that focus, clarity, and creativity become predictable. That same principle applies to leadership.

The highest-performing leaders don’t rely on bursts of motivation. They design routines that remove friction, protect energy, and create space for deep thinking. Consistency compounds.

This resonates deeply with me.

My own routine of waking up at 4 AM and running 10 KM daily has become a non-negotiable. It sharpens my thinking, steadies my emotions, and gives me clarity before the demands of the day take over. The discipline on the road carries directly into better decisions, calmer leadership, and longer-term thinking.

Physical endurance builds mental endurance. Leadership, like writing or running, is not a sprint — it’s a long game.

...