Greg Abel on potential for divesting businesses: 'It has to be a relationship that works'

May 2, 2026 - 23:36

Berkshire Hathaway CEO Greg Abel addressed the possibility of selling off some of the conglomerate's vast portfolio of businesses during the 2026 annual shareholder meeting. Speaking directly to investors, Abel emphasized that any decision to divest a subsidiary would hinge on the long-term health of the relationship between Berkshire and the acquired company's management.

"It has to be a relationship that works," Abel said, clarifying that Berkshire does not operate with a predetermined list of assets to shed. Instead, the process is organic. If a business no longer fits the culture of trust and autonomy that Berkshire demands, or if its leadership team is no longer aligned with the parent company's patient, long-term approach, then a sale becomes a serious consideration.

Abel's comments come as Berkshire continues to hold a massive cash reserve, leading some analysts to question whether the company is preparing for a major acquisition or, conversely, a period of pruning. The CEO did not name any specific subsidiaries under review, but he noted that the conglomerate evaluates each operating unit on its own merits. He stressed that Berkshire is not in the business of breaking up companies for short-term profit. The goal, he reiterated, is to maintain a collection of durable, well-managed businesses that can thrive across economic cycles. Any divestiture would be a last resort, taken only when the partnership has fundamentally broken down.