TLDR
- Berkshire Hathaway stock gained 0.82% to $500 on October 3, 2025.
- Company amended bylaws to separate chairman and CEO roles.
- Greg Abel to succeed Warren Buffett as CEO effective Jan. 1, 2026.
- Buffett will remain chairman after stepping down as chief executive.
- Berkshire’s financials show $370.15B revenue and $62.92B net income.
Berkshire Hathaway Inc. (NYSE: BRK-B) stock rose 0.82% to $500 on October 3, 2025, after the company formally announced a historic governance change.
Berkshire Hathaway Inc. (BRK-B)
The board voted to amend its bylaws, separating the roles of chairman and chief executive officer, effective January 1, 2026.
This shift clears the path for Vice Chairman Greg Abel to succeed Warren Buffett as CEO. Buffett, who has led Berkshire since 1965, will remain as chairman of the board, ensuring his influence continues in the company’s strategic direction.
The decision follows Buffett’s announcement at the May annual meeting that he planned to retire as CEO by the end of 2025, a rare moment that stunned investors worldwide.
Corporate Governance Update
The bylaw amendment marks the first formal separation of the company’s top roles in its six-decade modern history. The move is seen as a critical step toward ensuring continuity as Berkshire transitions leadership while maintaining its decentralized business model.
Abel, long considered Buffett’s natural successor, currently oversees Berkshire’s non-insurance operations. His appointment is widely expected to preserve the conglomerate’s culture of long-term value investing.
Financial Performance Snapshot
Berkshire’s latest financial data underscores the strength of the conglomerate ahead of this leadership transition. The company reported trailing twelve-month revenue of $370.15 billion and net income of $62.92 billion. Profit margin stands at 17%, with a diluted EPS of $29.16.
On the balance sheet, Berkshire holds $344.09 billion in cash, with a total debt-to-equity ratio of just 18.95%, reflecting a conservative financial posture. Levered free cash flow was reported at $28.27 billion.
Stock and Valuation Overview
At a market cap of $1.07 trillion, Berkshire remains one of the largest publicly traded companies in the U.S. Its trailing P/E ratio is 17, with a forward P/E of 22.78 and price-to-book value of 1.60.
Performance relative to the S&P 500 has been steady. Year-to-date, BRK-B has returned 10.34% compared with the S&P 500’s 14.70%. Over the past year, the stock gained 10.42% versus the index’s 18.35%. On a three-year basis, returns nearly matched at 83.34% for Berkshire and 83.40% for the benchmark. Over five years, Berkshire outperformed with 136.84% against 101.47%.
Outlook
The upcoming transition marks the end of an era in corporate America while signaling confidence in Berkshire’s ability to thrive beyond Buffett’s leadership. With a robust balance sheet, diverse holdings, and a clear succession plan, investors appear reassured as the company prepares for the next chapter.
