Berkshire Hathaway's Greg Abel pledges to follow Warren Buffett's 'framework'

Berkshire Hathaway's new chief executive laid out a vision for the conglomerate that signaled he would stick with what worked for his predecessor, Warren Buffett.

- Krystal Hur

"Berkshire’s culture and values form the basis of our operating framework, which shapes the strategy we pursue and the choices we make as we build Berkshire," Greg Abel wrote in his first letter to shareholders. "As CEO, the framework governs how I lead every day."

Abel reiterated the many virtues that made the company unusual, and unusually successful, during Buffett's long run: a decentralized model that gives its business managers autonomy, a vast stock portfolio overseen by the CEO, a reliably profitable insurance empire and a reluctance to buy back Berkshire shares or offer a cash dividend.

"Berkshire is a unique conglomerate, intentionally designed to allocate capital rationally and efficiently," Abel wrote. "We are committed to strengthening the great legacy built by Warren Buffett and his business partner Charlie Munger , ensuring it endures through our commitment to excellence."

Abel also confirmed to shareholders that Buffett is still involved in Berkshire's operations, writing that the Oracle of Omaha is in the office five days a week and available to consult on matters from underwriting insurance to dealmaking. But Abel also made clear that he was now fully serving as Berkshire's top executive, overseeing not only the company's many businesses but also its stock portfolio.