Berkshire Hathawaynew chief executive officer, Greg Abelhe said on Saturday that he is committed to preserving the $1.1 trillion (930 billion euros) conglomerate’s fortress-like balance sheet and that the large cash holdings do not signal a retreat from closing deals.

Abel used his first letter to shareholders to emphasize his investment integrity and commitment to the principles of his predecessor. warren buffett It was admired for a long time.

Mr. Abel, who took over in January, appointed himself as administrator of Mr. Buffett’s estate and signaled that the firm’s investment philosophy had not changed.

He told shareholders that Berkshire is active in evaluating new investments and remains a key port of call for companies looking to sell. The Nebraska-based conglomerate would become “an asset, not a risk, to the United States and the global financial system,” he wrote.

“Our balance sheet is a strategic asset that will be deployed at the appropriate time,” he wrote. “It allows us to act decisively, invest when others are hesitant or uncertain, and stand firm when financial storms roll in.”

[ Warren Buffett hands over Berkshire Hathaway’s reins to Greg AbelOpens in new window ]

The 63-year-old said stock buybacks remain “an important capital allocation option” and that as long as he and the board believe Berkshire can create shareholder value with that capital, the company will not pay a dividend.

Berkshire’s cash levels reached $373 billion at year-end, a record high when you exclude the value of previously purchased but unpaid Treasuries.

“At various times in Berkshire’s history, some observers have suggested that the company’s large cash position indicates a divestment,” Abel noted. “it’s not.”

He pointed to Berkshire’s $9.7 billion acquisition of Occidental Petroleum’s chemical business, which it completed earlier this year, and its agreement to buy pest control business Bell Laboratories.

“There is no doubt that there will be increased opportunities to deploy owners’ capital without compromising Berkshire’s resiliency. My role is to ensure that our liquidity levels and capital deployment remain intentional and planned.”

He added: “We’re always going to aim for ownership in companies that are more productive than U.S. Treasuries.”

Investors and analysts traditionally scrutinize Berkshire’s annual letters for insight into how the so-called Oracle of Omaha sees the world. Previously, it was full of Buffett’s personal anecdotes. He also used the letter to highlight key Berkshire staff, including Mr. Abel, which shareholders saw as a sign that his individual star was rising at the notoriously decentralized company.

Mr. Abel said Mr. Buffett continues to come into the office five days a week and is “available to us.” But he began reorganizing Berkshire’s headquarters. Last year, the company hired its first in-house lawyer and announced that the head of Berkshire’s energy business, a unit founded by Mr. Abel, would become its next chief financial officer later this year.

Todd Combs, one of Buffett’s investment representatives, has left JPMorgan Chase as part of a personnel change. Mr. Abel noted that the stock portfolio Mr. Combs built is now partially overseen by the firm’s investment manager, Ted Weschler.

“At Berkshire, equity investing is fundamental to our capital allocation activities, and the responsibility ultimately rests with me as CEO. [chief executive]” he wrote.

The letter did not have the down-to-earth tone that Buffett often has. Mr. Abel’s writing was straightforward, occasionally slipping into corporate jargon, such as when he detailed railroad operator BNSF’s efforts to improve its operating margins.

He continued Buffett’s tradition of using letters to highlight mistakes and areas for improvement in Berkshire’s dozens of businesses. He also detailed cash generation by many of the company’s subsidiaries that touch vast parts of the U.S. economy and financial system. Investors have complained in the past about the limited disclosure Berkshire provides about these units.

MacRae Sykes, a portfolio manager at Gabelli, which invests in Berkshire, said the letter “represents humility, clarity of communication and confidence in his role.”

“Strictly speaking, it’s a gold medal in the annual letter review of corporate business,” Sykes said, noting that Abel touches on all of Berkshire’s core businesses. “Shareholders should be confident that he has a comprehensive understanding of the business,” he said.

The letter was accompanied by fourth-quarter financial results that showed Berkshire’s operating profit slumped 30% from a year earlier, to $10.2 billion, due to weak profits at Berkshire’s insurance division.

Net income decreased 2.5% from the previous year to $19.2 billion. For the full year, net income fell 25% to $67 billion.

Echoing Buffett’s past statements, Abel cautioned investors not to draw conclusions from the net numbers, which are influenced by the rise and fall in value of his $298 billion stock portfolio.

Berkshire’s write-downs on its holdings in oil and gas giant Occidental Petroleum and processed food giant Kraft Heinz took a toll on business results, reducing full-year profits by $8.3 billion.

Mr. Abel described the Kraft investment as a “disappointment,” adding: “Our returns are far from adequate.” Berkshire is considering unloading its stake in the food group it played a key role in founding.

He said the overall performance “highlights the sustainability of our business, while also reflecting the fact that there are opportunities for further improvement.”

He noted that competition has increased in Berkshire’s insurance business as capital flows into the insurance industry from private investment groups, weighing on pricing. Berkshire has traditionally scaled back underwriting when the premiums it could earn were unattractive, and Abel said that stance remains a core principle.

Berkshire also continued to sell off parts of its stock portfolio, including multibillion-dollar stocks such as Apple and American Express. The company reduced its portfolio by $3 billion in the final three months of last year, bringing its total stock sales since it began liquidating positions in 2022 to $187 billion.

Mr. Abel has no plans to provide commentary on quarterly results, something Mr. Buffett has long avoided. But he said he is eager for shareholders to “take the time to learn more about the Berkshire team.”

He said he will join several executives on stage at the company’s annual meeting in May, including Ajit Jain, who heads Berkshire’s insurance business, Katie Farmer, BNSF’s chief executive officer, and Adam Johnson, who was recently promoted to oversee the company’s consumer products, services and retail division.

“Warren’s actions are clearly very difficult to follow,” he wrote. – Copyright The Financial Times Limited 2026