Buffett also leaves Abel and Berkshire Hathaway with a tremendous stockpile of cash. Buffett began selling stocks last year ahead of the market sell-off, while also ending the company's buyback program. Together with increased operating profits, Berkshire ended the first quarter with a whopping $347.7 billion in cash on its balance sheet.

Berkshire Hathaway stock reacted early Monday after Warren Buffett surprised shareholders with the announcement he would step down.

Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) entered 2025 with the wind at its back because of an astute shift the company made in 2024. Don't expect outperformance like this in every market period,