Greg Abel, Warren Buffett's successor at Berkshire Hathaway (NYSE:BRK) (NYSE:BRK), is no longer waiting in the wings--he's already stepping into the role of chief executive in practice.

What Happened: On Friday, in an interview with CNBC, Sue Decker, lead director of Berkshire Hathaway's board, said Abel has begun actively taking on core leadership responsibilities, particularly in capital allocation.

"In the last year, the board, really Greg and Warren, have moved from sort of preparing for success to actually practicing it," Decker said. "Greg has gotten much more involved in capital allocation decisions, and I know he's earned the trust of the board and Warren in that."

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Decker added that Abel is no longer viewed internally as a "CEO-in-waiting" because he is already taking on the leadership role.

When questioned about Berkshire's sizable cash reserves, Decker explained that the company views its cash not as unused funds but as a deliberate strategic asset.

"When you think about what's going on right now in the world, there's really no other company in the world that has a fortress of a balance sheet that also could be used to help stabilize or provide liquidity if some major financial market dislocation happened," she stated.

Why It's Important: "At 94, it won’t be long before Greg Abel replaces me as CEO and will be writing the annual letters," Buffett wrote in the annual shareholder letter released in February earlier this year.

Throughout the letter, the Oracle of Omaha hinted it multiple times that Abel is an active participant in the senior decision-making process.

On the first Saturday of May, Berkshire is expected to hold its annual shareholders meeting. It is highly speculated that Buffett may address tariffs for the first time since Donald Trump's "Liberation Day" announcement, reported Fortune.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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