Buffett Exits Berkshire CEO Role as "Buffett Indicator" Hits Record High, Signaling Market Caution

• Warren Buffett steps down as Berkshire Hathaway CEO after nearly six decades, transforming it into a USD 1 trillion conglomerate.
• He will remain Berkshire's largest shareholder, involved as an advisor, with Greg Abel taking over as CEO.
• Buffett's departure coincides with the "Buffett Indicator" reaching a record 221% (as of Dec 30, 2025), its highest since 1970.
• The record-high indicator, driven by tech and AI, suggests US market valuations are significantly ahead of economic output.
• Historically, such elevated readings imply muted long-term returns, serving as a caution signal for investors, not a market timer.

Why It Matters: Buffett exits Berkshire amid record market valuations, leaving a legacy of caution and long-term value.