00:10 Jared
And Berkshire Hathaway is entering a new chapter in 2026 as Warren Buffett officially hands the reigns to longtime lieutenant, Greg Abel. For more, we’re bringing in Yahoo Finance senior markets reporter, Ines Ferre with this week’s Investor Playbook. Ines.
00:33 Ines Ferre
Jared, and in this week’s investor playbook, we took a look at Berkshire Hathaway and Warren Buffett really leaves this company with some stunning returns. If an investor put money into Berkshire Hathaway back in 1965 when born Warren Buffett took the helm, they would have made a realized return of 6,100,000%. That’s far above the S&P 500’s approximately 46,000% return including dividends. The growing question now that Greg Abel is at the helm is what will Berkshire Hathaway do with its cash pile of 380 billion dollars. You have the AI boom that’s sweeping over Wall Street, you had you have high valuations. So the question is, what do they acquire? Uh, analysts anticipate that investors may start to clamor for a dividend if they’re not spending that cash. Uh, you had uh on Yahoo Finance Jonathan Boyer, President of Boyer Research, he’s a shareholder. He said that as a shareholder, the amount of cash that Berkshire has is excessive and he would like to see a dividend because if Warren Buffett, who is an excellent stock picker is gone, then he would like to start see to see the company pay a dividend. Now, while Buffett and also the late Charlie Munger, they were famous for having a sort of hands-off decentralized sort of approach to the company, Greg Abel is seen as somebody that may be more hands-on. So there is this expectation that perhaps there would be some consolidation, some some cutting of fat. He may also be leaning into some of his areas that he’s come from in of expertise with respect to energy, with respect to industrials, especially as you have this AI boom that’s happening. But one thing is for sure is pearls Buffett’s pearls of wisdom, uh his advice uh on investing, buying wonderful companies at a fair price. That is something that is timeless and analysts are saying that that is something that is sage advice for investors during any period.
03:13 Jared
Yeah. Well, thank you for that report, Ines.