Buffett Is Gone... And Berkshire May Finally Be Ready to Run

For decades, Berkshire Hathaway $BRK.B ( ▲ 0.18% ) was viewed as “Warren Buffett’s company.”

And for good reason.

Buffett built one of the greatest long-term investment vehicles in financial history by combining disciplined capital allocation, strong operating businesses, and a relentless focus on long-term value creation.

But now, for the first time in decades, Berkshire is entering a new era.

And ironically… that transition may be creating one of the best buying opportunities investors have seen in years.

Shares of Berkshire have pulled back more than 15% from their mid-2025 highs and remain firmly in correction territory. Meanwhile, the S&P 500 continues to hover near record highs as investors crowd into the same handful of mega-cap AI names.

That divergence is worth paying attention to.

Because beneath the surface, Berkshire may now be positioned to outperform the broader market over the next several years.

The biggest reason?

Cash.

A massive amount of it.

Berkshire’s cash pile has surged to nearly $400 billion - one of the largest war chests in corporate history.

For years, Buffett remained cautious. He repeatedly sold stocks, avoided large acquisitions, and allowed cash balances to build as valuations across the market became stretched.

That discipline protected Berkshire during volatile periods.

But now the leadership dynamic is changing.

Greg Abel officially took over as CEO earlier this year, and while he has made it clear Berkshire will maintain its conservative culture, there are already signs the company could become more operationally aggressive and more technology-focused under his leadership.

At Berkshire’s recent annual meeting, Abel discussed how technology and AI can improve efficiency and profitability across Berkshire’s businesses - including GEICO, BNSF Railway, manufacturing operations, and consumer subsidiaries.

Importantly, this is not about Berkshire suddenly chasing speculative AI stocks.

That is not Berkshire’s style.

Instead, this is about using technology to improve margins, optimize operations, and unlock more earnings power from the massive collection of businesses Berkshire already owns.

Berkshire owns insurance companies, railroads, energy infrastructure, manufacturing businesses, utilities, industrial operations, consumer brands, and enormous equity stakes in companies like Apple, American Express, Coca-Cola, Chevron, and several Japanese trading houses.

And those Japanese investments are becoming increasingly important.

Recently, Berkshire increased its stakes in two Japanese trading companies, continuing a multi-year push into global infrastructure, commodities, industrials, and energy-linked businesses.

In many ways, Berkshire is becoming one of the largest diversified “real economy” investment platforms in the world.

That could become especially attractive if market leadership broadens beyond the Magnificent Seven.

Buffett’s presence may have actually limited Berkshire’s flexibility in recent years.

Not because Buffett lost his touch, but because Berkshire became so enormous that deploying capital effectively became increasingly difficult. Buffett himself often acknowledged that Berkshire’s size limited potential returns.

Now, with Abel in charge, investors may begin to see a slightly more active version of Berkshire emerge over time.

Not reckless or speculative, but potentially more willing to:

In fact, Berkshire already restarted stock buybacks under Abel’s leadership after a long pause.

And with nearly $400 billion sitting on the sidelines, Berkshire has the firepower to capitalize on opportunities few companies in the world could pursue.

That creates a very interesting setup for long-term investors.

While much of Wall Street continues chasing momentum and expensive AI leaders, Berkshire offers:

Most importantly, it offers something increasingly rare in this market: Value combined with optionality.

The stock may not double overnight.

That has never been the Berkshire story.

But after a meaningful correction, with one of the strongest balance sheets in the world and a potential strategic shift underway, Berkshire Hathaway could quietly become one of the best ways to outperform the S&P 500 over the next several years.

Here’s to the future, 
Matt McCall
Founder, NXT Wave Research