Jim Cramer Praises Berkshire Hathaway Succession Plan as Buffett Steps Down

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2▲1 ▼0Impact / 5
Summary · why it matters

Warren Buffett is stepping down as chairman of Berkshire Hathaway, with his son Howard Buffett set to replace him, and Jim Cramer praised the succession plan on his morning appearance on the 18th, saying he could not find any company with such a definitive succession plan. The 2026 year is the first in which Berkshire Hathaway operates under new CEO Greg Abel, whose investment approach has differed from Buffett's, with more than $20 billion in stock purchases, of which $17 billion went into Google parent Alphabet alone. Berkshire Hathaway shares have been lackluster in 2026, up roughly 1% year-to-date and down 3% since mid-September. In the second quarter, the firm's revenue and operating earnings grew by 10% and 16.3%, its insurance float stood at $177.5 billion, and its cash pile was $365 billion. The company's forward P/E ratio is 22.88, well above insurance peer Progressive Corp., and 135 hedge funds disclosed a stake in the firm in Q2, up from 126 in Q1, with D E Shaw raising its stake by 311% to $961 million and Yacktman Asset Management by 269% to $581.

Impact on assets 3

Energy Transition & Power Demand▲
Berkshire Hathaway Inc
BRK-B
± MixedCapitalrelevance

Buffett steps down as chairman with son Howard succeeding him and Greg Abel now CEO; Cramer praises the succession plan, while shares lag and Q2 revenue/operating earnings grew.

Artificial Intelligence▲
Alphabet Inc Class C
GOOG
▲ PositiveDemandrelevance

Berkshire under Greg Abel deployed over $20 billion in stock purchases, with $17 billion going into Alphabet alone.

Financials▲

Off-coverage companies 2

D. E. Shaw Groupi
Private± Mixedrelevance

Yacktman Asset Managementi
Private± Mixedrelevance