Honestly, the world of investing just feels different now. For decades, the ritual was the same: wait for the annual letter, book a flight to Omaha, and listen to the Oracle. But as of January 2026, the torch has officially passed. Warren Buffett has stepped back from the CEO role at Berkshire Hathaway B, leaving Greg Abel to steer a ship that is currently worth well over a trillion dollars.
Most people are asking the same nervous question. Is the "Buffett Premium" gone? If you look at the ticker BRK.B, you'll see a stock that has spent the last few months hovering around the $490 to $500 range, basically catching its breath after a massive multi-year run. The market is skeptical, sure. But if you think Berkshire is just one man, you're kinda missing the point of what he actually built.
What Most People Get Wrong About the B Shares
There is this lingering myth that Berkshire Hathaway B is just a "watered-down" version of the legendary Class A shares. People see that $730,000+ price tag on the A shares and think they’re getting a second-class product with the B shares.
🔗 Read more: The Real Reason It's All About the Relationship (and Why Your Strategy is Failing)
That's not how it works.
Basically, the B shares were created in 1996 to stop unit trusts from carving up A shares and charging retail investors high fees. Buffett wanted to give regular people a way to own a piece of the company directly. While one BRK.B share only gives you 1/10,000th of the voting rights of an A share, the economic interest is 1/1,500th. Unless you’re planning a hostile takeover—which, good luck—the voting difference doesn't really matter for your retirement account.
The $381 Billion Elephant in the Room
As we hit the start of 2026, Berkshire is sitting on a record-breaking cash pile. We’re talking about $381.7 billion. To put that in perspective, they could basically buy Disney or Netflix in cash and still have change for lunch.
💡 You might also like: GB Pound to PKR: What Most People Get Wrong About Today's Rate
Some investors find this frustrating. They see the S&P 500 ripping higher on AI hype while Berkshire sits on short-term Treasury bills. But that’s the secret sauce. Buffett—and now Abel—refuse to overpay. They are waiting for a "fat pitch."
The Recent OxyChem Play
Just this month, on January 2, 2026, Berkshire finalized a $9.7 billion acquisition of Occidental Petroleum’s chemical unit, OxyChem. It didn't make massive headlines compared to a tech merger, but it’s a classic move. It adds a cash-generative, industrial asset to a portfolio that already includes everything from GEICO to Dairy Queen. This is why you own Berkshire Hathaway B. It’s a collection of businesses that people need whether the economy is booming or breaking.
The Abel Era: Is Greg Up to the Task?
Greg Abel isn't a "stock picker" in the way people think of Buffett. He’s an operator. He’s the guy who built Berkshire Hathaway Energy into a powerhouse.
- Operational Focus: Abel has already signaled he’ll run things similarly to the old guard, but with a heavier hand on the operational side of the 90+ businesses Berkshire owns.
- Compensation Shift: Unlike Buffett’s famous $100,000 salary, Abel is set to earn roughly $25 million in 2026. It’s a jump, but it’s actually fairly standard for a CEO of a company this size.
- The Portfolio: Todd Combs and Ted Weschler are still there handling significant chunks of the equity portfolio. They’ve been trimming Apple lately—down to about 21% of the portfolio—which shows they aren't afraid to move away from "the favorites" when the valuation gets stretched.
Why the Valuation Looks Weird Right Now
If you look at the technicals, Berkshire Hathaway B is in a bit of a "Golden Cross" phase. The 50-day moving average recently crossed above the 200-day, which usually gets the chart-readers excited. But the fundamentals tell a more grounded story.
Currently, the stock trades at a Price-to-Book (P/B) ratio of about 1.52. Historically, Buffett liked to buy back shares when they were near 1.2. The fact that the company didn't do any buybacks in the last quarter of 2025 tells you something: management thinks the stock is fairly valued, but maybe not a "screaming bargain" just yet.
Morningstar and other analysts have placed fair value estimates for the B shares around $510 to $530. So, at $492, you're buying it at a slight discount to its intrinsic value, but you aren't getting the "steal" of a lifetime.
The Risks You Can't Ignore
It’s not all sunshine and compound interest.
The biggest risk to Berkshire Hathaway B right now is the succession discount. There’s a psychological safety net that disappeared when Buffett retired. If Greg Abel makes a big acquisition that flops, the market won't be as forgiving as they were with Warren.
Then there’s the tech gap. Berkshire has dipped its toes into Alphabet and Amazon, but it’s still very much a "bricks and mortar" conglomerate. If the global economy shifts entirely toward AI and software-as-a-service, Berkshire’s railroads and insurance companies might feel like relics.
📖 Related: Max Earnings for Social Security 2025: What Most People Get Wrong
How to Handle Berkshire in Your 2026 Portfolio
If you’re looking to add Berkshire Hathaway B to your holdings today, don’t treat it like a tech stock. It’s a defensive play. It’s the "sleep well at night" part of your portfolio.
- Check the P/B Ratio: If it creeps toward 1.2 or 1.3, it’s usually a strong buying opportunity.
- Watch the Cash Pile: If that $381 billion starts being deployed into new companies, that's your signal that management sees value in the market again.
- Mind the Gap: Since B shares can't be converted back to A shares, watch for the rare moments when the B shares trade at more than a 1% discount to 1/1,500th of the A price. That’s your entry point.
The Oracle might be in the press box now instead of on the field, but the playbook hasn't changed. Berkshire is still a bet on American industry, disciplined capital allocation, and the power of doing nothing when there’s nothing smart to do.
Next Steps for Investors:
- Review your concentration: Check if you’re over-exposed to Apple via other ETFs, as Berkshire still holds a massive 21% stake in the tech giant.
- Monitor the May Meeting: The 2026 Annual Meeting will be the first without Buffett as CEO; pay close attention to Greg Abel’s tone regarding future acquisitions.
- Set a Limit Order: Given the recent volatility around the $490 level, setting a limit order near the 200-day moving average ($497 range) could offer a safer entry point for long-term holders.