3 Reasons to Buy Berkshire Hathaway Stock Like There's No Tomorrow

The big story through the end of 2025 for Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is going to be the pending retirement of CEO Warren Buffett. Given his long tenure at the top and history of success, that makes complete sense. But the company will live on and is probably worth buying for a lot of investors. Here's three reasons to buy the stock now instead of waiting until some distant tomorrow.

1. Warren Buffett isn't going very far

Warren Buffett has run Berkshire Hathaway for decades. And he's earned the nickname the Oracle of Omaha because of the incredible success the company has achieved under his guidance. The fact that he's handing the CEO reins over to key lieutenant Greg Abel is a very big deal, but it isn't the end of the company or even the end of Buffett's relationship with the giant conglomerate.

Image source: The Motley Fool.

Very specifically, Buffett will be remaining on as the chairman of the board of directors. The board hires the CEO, so Abel will, technically, still answer to Buffett. That probably isn't the real benefit of this situation, however. The goal is likely to ensure that Abel still has easy access to Buffett if he should need anything, from a quick conversation around an investment idea to guidance about how to handle a situation with an owned business. And a lot in between.

Abel was, effectively, trained by Buffett. And Buffett isn't leaving him high and dry. The Oracle is still in town and open for business. This is a much slower power transition than it may at first seem, suggesting that Berkshire Hathaway will remain very similar to what it is today, at least for a while longer.

2. Putting all that cash to work

At the end of the second quarter of 2025, Berkshire Hathaway's balance sheet carried over $340 billion worth of cash and marketable securities. That is a huge sum of money that can serve two purposes for Abel when he takes over in 2026.

First, it's a ballast against a storm. Sure, the cash is a drag on performance, since it could probably generate more return if it were invested. But if the market crashes, that cash will actually protect performance, since higher interest rates mean it will continue to generate a consistent income stream for the company. So there's a protective element here.

Second, when there is a bear market (not if) Abel will have ample firepower to pick up investments while they are cheap. The ability to act opportunistically while everyone else is selling out of fear is a huge advantage. And it basically allows Abel to continue the approach that Buffett has longed used to his advantage.

3. There's so many options on what to buy

As Buffett gets set to retire, he is buying the chemicals business of Occidental Petroleum (NYSE: OXY) for roughly $10 billion. That's not shocking given the long relationship that Berkshire Hathaway has had with Oxy. But it also isn't a shock because the assets being bought will fit well within the broader Berkshire portfolio. But then, so would a retailer or a train company or a utility.

Berkshire Hathaway owned 189 different companies at the end of 2024. The industries that list covers are expansive and highly varied. In fact, Berkshire Hathaway is kind of run like a mutual fund more than a traditional business. It is best to look at it as the investment vehicle of Warren Buffett, though that is soon to be Greg Abel. Still, this is not a one-trick pony. When there's an opening to invest, Berkshire Hathaway will not be limited in where it can find the best values. And that increases the long-term opportunity for the business and investors.

Tomorrow isn't going to be all that different

At the end of the day, investors who are worried about what tomorrow will bring for Berkshire Hathaway should probably step back and take a deep breath. The company is going to change, since Abel is not Buffett. But it isn't likely to change all that much and certainty not right away. If you have been thinking about buying Berkshire Hathaway stock, now is probably as good a time as any if you think in decades and not days.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.