There was a massive change at Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) at the start of 2026. Long-time CEO Warren Buffett retired, handing off the leadership reins to Greg Abel. Wall Street was worried that Abel wouldn't be able to fill Buffett's shoes. However, Buffett didn't just leave Abel to the wolves. And Berkshire's $30 billion investment in Google's parent, Alphabet (NASDAQ: GOOG), is a sign that Buffett is still around. Here's what you need to know.

Berkshire Hathaway's big change came with a backstop

Warren Buffett spent decades building Berkshire Hathaway into a massive conglomerate. It was, in reality, his investment vehicle, allowing shareholders to invest alongside the man affectionately known as the Oracle of Omaha for his impressive investment success. His retirement at the end of 2025 was a major event for the company and its shareholders.

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However, Buffett didn't cut and run. He hand-picked Abel, his successor, after working with him for years. Buffett also left Abel with nearly $400 billion of cash on the balance sheet. That money provides Berkshire Hathaway with a cushion for difficult times and the firepower to buy companies during a recession and/or bear market. The latter being something Buffett did frequently as CEO.

But there was one more piece of the puzzle that is, perhaps, even more important: Buffett shifted from being the CEO to being the chairman of the board. Technically, he's still Abel's boss. The real benefit is that Buffett is still around to help out, as needed. And he's still there to make some investment calls, if he feels strongly enough. The decision to invest in Alphabet was one such case, as Buffett recently told CNBC in an interview.

Buffett is working with Abel, not operating autonomously

Investors shouldn't get the wrong impression. Buffett made it clear that he made the call, but Abel approved of the decision. Essentially, the two talk frequently and, according to Buffett, are on the same page. What is also important to remember is that Buffett is not the CEO. He's there to help, not to run the ship. While he may make the occasional investment suggestion, as he did with Alphabet, he isn't running the day-to-day business.

Abel is already putting his own imprint on the company. That was highlighted by Berkshire Hathaway's purchase of Taylor Morrison Home. Abel specifically noted that Berkshire Hathaway would integrate the new addition with its other housing businesses. That is something that Buffett, who was a very hands-off manager, wouldn't have done.