Berkshire or Pershing Square? Here’s the Firm I’m Betting On for the Next 10 Years

Berkshire Hathaway (NYSE:BRK.B) has been a steady performer over the decades, but, of late, the legendary conglomerate seems to be entering uncharted territory, with a new CEO who’s not named Warren Buffett (enter Greg Abel) and a cash pile that’s starting to get quite mountainous. Of course, it’s becoming harder to give shares a jolt via acquisitions unless, of course, we’re talking about an elephant-sized takeover.

After all, Berkshire is no longer a $100 billion company; it’s a behemoth with a market cap north of $1 trillion. Either way, I think Abel, a smooth operator over at Berkshire, is a stellar operator who can bring Berkshire to the next level despite the more challenging, but also exciting, road ahead.

Berkshire Hathaway looks cheap without the “Buffett premium”

With Berkshire recently announcing the intent to buy back stock, I’d take it as a sign that shares are starting to get undervalued again.

Either way, shares are off to a turbulent start to the year, off 2.5% year to date, which, believe it or not, is besting the S&P 500, which is down 3.5% at the time of this writing. Though it’s far too early to judge Abel (it hasn’t even been a single quarter yet!), I do think investors might be wondering how a Buffett and Munger-less Berkshire will do in the long run.

While I’m sure most long-time Berkshire shareholders will stay the course and continue to fill the arena over in Omaha every year, I also think some of the more impatient shareholders might wish to discover another star stock-picker, perhaps one with a proven record and enough leanness and agility to continue outpacing the markets over the long haul.

Of course, I’m speaking of Pershing Square’s Bill Ackman, who’s been under the spotlight of late for his pair of Pershing IPOs: one that’ll invest in the fund (Pershing Square USA) and the other that’ll invest in Ackman’s fee-collecting side of the business.

Bill Ackman and Pershing Square could have their big moment

Ackman has to be one of the biggest celebrity investors outside of Buffett. And with “free” shares of the management company to be thrown in with the closed-end fund, I do think the stage is set for significant day-one interest as Ackman looks to build his own Berkshire-like entity. 

Some folks may have their doubts about whether the fee is still worth paying, even if it’s waived for the first year. While Ackman’s long-term track record is enviable, the more-recent performance may have some on pause. Shares of Pershing Square Holdings (PSH) are down more than 16% year to date. Talk about a tough start to 2026!

While the market’s sinking feeling might carry well through IPO day (it’s not set yet; Ackman just filed over a week ago), I do think that I’d much rather buy Berkshire than take a shot on the potential “next Berkshire.” Of course, Berkshire might not be a market-crusher under Abel’s leadership, but, then again, perhaps there is room for relative outperformance, especially if Abel is the man who embraces AI.

Whether it’s through GEICO, the power edge over at Berkshire Hathaway Energy, or somewhere else, there are AI-induced gains to be had across the Berkshire businesses. And Abel might be the man to give Berkshire its second wind. 

The bottom line

While I respect Ackman’s boldness and ability to produce alpha from stock picks and timely hedges, I just can’t say I’m in a rush to get in the door on debut day. Perhaps if the fee structure changes, I’d reconsider. But, for now, I’m fine sticking with Berkshire for the next 10 years and beyond with Abel and (Ajit) Jain, who’ll now be in the hot seat at those annual meetings.