Buffett's Retirement Marks New Era for Berkshire Hathaway Leadership
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 28 2026
0mins
Should l Buy BAC?
Source: Fool
- Leadership Transition: Warren Buffett officially retired as CEO of Berkshire Hathaway on December 31, 2025, with his long-time understudy Greg Abel taking over after more than 25 years at the company; while Buffett remains chairman, Abel now oversees daily operations and the investment portfolio.
- Investment Strategy Shift: Abel is likely to sell Bank of America, previously Buffett's second-largest holding, as it was notably absent from Buffett's list of eight 'forever' stocks in his 2023 annual letter, indicating a significant strategic shift under new leadership.
- Clear Reduction Trend: Berkshire's 13F filings reveal that Buffett has been a consistent seller of Bank of America shares for six consecutive quarters, having reduced his stake by nearly 515.6 million shares, or about 50%, suggesting that BofA is no longer viewed as a core holding.
- Valuation No Longer Attractive: By early 2026, Bank of America shares were trading at a 43% premium to book value, a stark contrast to the 62% discount when Buffett initially invested, and Abel's commitment to value investing may lead to BofA's eventual exit from Berkshire's portfolio.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 52.750
Low
55.00
Averages
61.64
High
71.00
Current: 52.750
Low
55.00
Averages
61.64
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Chevron Director Reduces Stake: Chevron (CVX) director John Hess sold 195,000 shares in the price range of $183.90 to $185.21, totaling $36.03 million, which decreased his holdings by 2.22%, potentially impacting corporate governance structures.
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- Extensive Experience: Hardegree brings over 30 years of M&A investment banking experience, having most recently served as vice chair of technology investment banking at UBS, where he advised on major deals including Broadcom's acquisition of VMware, which is expected to provide valuable industry insights to BofA.
- Market Expansion: BofA is ramping up hiring in the M&A sector, having previously recruited four veteran bankers from competitors this year, reflecting its commitment to expanding market share in tech dealmaking, particularly as deal activity rebounds.
- Optimistic Outlook: M&A activity is expected to accelerate through 2026, supported by a more balanced regulatory environment in the U.S. and investments in artificial intelligence technologies, with approximately $2 trillion in deals announced this year, marking a 32% increase from the same period last year.
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- Retail Investor Allocation: A large portion of the IPO is allocated to retail investors, allowing everyday investors to gain exposure to SpaceX's equity, which enhances market interest and participation in the company's growth.
- Alphabet's Investment Returns: Alphabet invested $900 million in SpaceX in 2015 for a 7% stake, which has since reduced to 6% by the end of last year, while also forming an infrastructure partnership with SpaceX's Starlink, solidifying its strategic position in the space sector.
- EchoStar's Potential Gains: EchoStar has a deal with SpaceX that, pending regulatory approval, will allow it to sell spectrum and receive SpaceX shares, potentially holding a 2.8% stake; if SpaceX reaches a $2 trillion valuation, EchoStar's stake could be worth $56 billion, highlighting its significant potential in the space market.
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- Alphabet's Investment Returns: Alphabet invested $900 million in SpaceX in 2015 for a 7% stake, which has reportedly decreased to 6% by the end of last year, while also forming an infrastructure partnership with SpaceX's Starlink, enhancing its competitive edge in the tech market.
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