Warren Buffett just made a bold statement about his successor

Warren Buffett has formally handed over the chief executive role at Berkshire Hathaway (Berkshire Hathaway Stock Quote, Chart, News, Analysts, Financials NYSE:BRK.B) to longtime successor Greg Abel, marking the culmination of a transition that has been years in the making.

Speaking in an exclusive interview with CNBC’s Becky Quick on Money Movers on Jan. 2, Buffett offered a strong personal endorsement of Abel’s leadership and judgment.

“Greg’s operated more than I have when you get right down to it,” Buffett said. “He knows there’s no secret formula that only CEOs have… I’d rather have Greg handling my money than any of the top investment advisors or any of the top CEOs of the United States.”

Buffett added that the endorsement reflects a long-standing decision by Berkshire’s board rather than a sudden change. “It is a huge endorsement, but it’s an endorsement we’ve made,” he said. “He knows business.”

CNBC senior markets commentator Mike Santoli said the handoff is unusually well telegraphed, with Abel having run Berkshire’s non-insurance operations for seven to eight years and serving as the designated successor for more than four years.

“In terms of everybody being prepared for how this was going to go, it’s hard to ask for more,” Santoli said, adding that if anything, the transition may have been slow rather than rushed.

Santoli noted that open questions remain around how Abel may manage Berkshire’s sprawling non-insurance businesses, including whether functions become more centralized and how capital return policies may evolve over time.

While Berkshire has historically avoided dividends, he said comparisons with the S&P 500 increasingly factor in total return, including payouts.

Despite recent relative underperformance versus tech-heavy indices, Santoli said Berkshire continues to act as a haven when market stress rises, supported by its scale and balance sheet. The company holds roughly $380-billion in cash and more than $300-billion in publicly traded investments, accounting for about half of its market capitalization.

He added that future large acquisitions are more likely to come from Berkshire’s non-insurance operating companies rather than railroads, with management continuing its long-standing approach of waiting for opportunities rather than pursuing predefined targets.

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