2 Predictions for Berkshire Hathaway in 2026

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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Long-time CEO Warren Buffett retired from that position on Dec. 31, 2025, turning over the reins to Greg Abel. While Buffett plans to continue working for Berkshire, Abel will run the day-to-day operations. I think 2026 could be a busy year for Buffett's successor. Here are two things I predict he'll do in his first year running Berkshire Hathaway.Image source: Getty Images.Berkshire Hathaway has only paid one dividend during Buffett's tenure. Buffett joked that the board must have made the decision to pay that dividend in 1967 while he was in the bathroom. His preference has always been to retain the company's profits to reinvest them back into the business rather than pay dividends to shareholders. That strategy has worked over the years. Buffett and his team have consistently identified attractive opportunities to invest capital. They've routinely acquired great operating businesses to expand Berkshire's platform, including Precision Castparts, BNSF, and Alleghany. Additionally, Berkshire Hathaway frequently purchases shares of high-quality, publicly traded companies. The company's investment portfolio is currently valued at nearly $310 billion and features notable names such as Apple, American Express, and Coca-Cola. However, Berkshire Hathaway has found fewer opportunities to put capital to work in recent years. While the company agreed to buy Occidental Petroleum's chemicals subsidiary, OxyChem, for $9.7 billion in October, that was its first major deal since buying Alleghany Corporation for $11.6 billion in 2022. Meanwhile, Berkshire has been a net seller of stocks for the past 12 straight quarters. The company also hasn't repurchased any of its stock in the past five quarters. As a result, Berkshire Hathaway has amassed a substantial cash position. It reached a record $381.7 billion by the end of the third quarter. Berkshire is currently generating interest income on this cash by investing it in T-bills (it currently holds more T-bills than the Federal Reserve). However, with interest rates falling and Berkshire's cash position rising, investors will eventually demand that the company start returning some of this money to them. That drives my prediction that Berkshire Hathaway will initiate a dividend payment by the end of 2026. 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