The legend is finally hanging up his hat. As of Wednesday, December 31, 2025, Warren Buffett is officially retiring as the CEO of Berkshire Hathaway. After 60 years of turning a dying textile mill into a 1.16 trillion empire, the 95-year-old “Oracle of Omaha” is stepping back to let Greg Abel take the wheel starting tomorrow, January 1, 2026.
The thing is, Buffett isn’t leaving behind a calm market. Or nothing. Let’s be real, his own favorite valuation metric—the Buffett Indicator—is screaming that the party is way too loud. Those too.
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The “Buffett Indicator” Hits Red Alert
This gauge is basically a price tag for the entire US stock market compared to the size of the economy (GDP).
| Metric | Status as of Dec 31, 2025 | The “Vibe” |
| Current Ratio | 221.03% | Highest since records began in 1970. |
| Historical Average | ~120% | We are nearly double the “healthy” norm. |
| Market Status | Significantly Overvalued | Driven by the AI boom and record-low unemployment. |
Field Notes: The Oracle’s Exit Strategy
It’s an ongoing situation where the master is leaving his successor a massive safety net, but also a giant headache.
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The Cash Hoard: Buffett is leaving Abel with a record 381.7 billion in cash. Why? Because he couldn’t find anything “cheap” enough to buy.
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The “Succession Discount”: Berkshire stock has lagged the S&P 500 by about 5% this last quarter. Investors are nervous—not about Abel, but about a Berkshire without “The Brand.”
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Personnel Shakeups: Just weeks before the exit, top lieutenant Todd Combs jumped ship to JPMorgan. This leaves Ted Weschler as the lone captain of the equity portfolio.
What Happens at Midnight?
And here’s the kicker: Buffett isn’t actually vanishing. He’ll stay on as Non-Executive Chairman. He says he’ll still “hang around” and come into the office, but the final word on where the money goes now belongs to Greg Abel.
Basically, Buffett is exiting the stage at the exact moment his indicator suggests the market is overdue for a “pullback.” It’s an ongoing situation where he’s once again proving his motto: “Be fearful when others are greedy.” Today, the market is very, very greedy.
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