Warren Buffett's departure is putting a 'succession discount' on Berkshire Hathaway stock, a strategist says

• R360's Barbara Goodstein says Berkshire Hathaway's coming shake-up is an opportunity for investors.
• Appearing on CNBC, Goodstein said Berkshire stock was trading at a "succession discount."
• Longtime Berkshire CEO Warren Buffett is set to retire at the end of the year.

Berkshire Hathaway is gearing up for the biggest leadership shake-up in decades, and one strategist thinks it presents the perfect time to buy the stock.

Barbara Goodstein, a managing partner at R360, an invitation-only investment and networking group for ultra-high-net-worth individuals, told CNBC on Monday that longtime Berkshire CEO Warren Buffett's impending departure offered a "lot of opportunity" for investors.

Buffett, 95, is set to step down as the CEO of Berkshire at the end of 2025 after nearly 60 years in the role. He will be replaced by Greg Abel, who heads the firm's non-insurance businesses and will stay on as its chairman.

Goodstein said the change did not make Berkshire stock any less attractive.

"We are strong into Berkshire Hathaway, we've always respected their moves," she said, adding: "We're calling this a 'succession discount.'"

"We think the stock is trading below what it will become because everybody is waiting to see how Greg Abel performs."

Berkshire Hathaway's stock price is up nearly 11% this year.

Goodstein pointed to Berkshire's cash pile as particularly intriguing, saying she believed the firm had been "sitting on it" to allow Abel to make a "big move in 2026."

In the third quarter, Berkshire grew its cash pile to a new record of more than $350 billion, or $382 billion if payables for Treasury purchases were excluded. The company also reported a 34% year-on-year increase in operating income to $13.5 billion.

Under Abel's leadership, Goodstein added that she thought Berkshire may look to invest in energy or defense.

"Berkshire Hathaway is well-positioned. They've always been looking at the trends. And we think that those are the two sectors that have lots of upside."

Buffett announced his decision to step down as chief executive in May, during the closing moments of his company's annual meeting in Omaha.

In a letter to shareholders in November, Buffett addressed the looming changes and heaped praise on Abel, calling him a "great manager, a tireless worker and an honest communicator."

"I can't think of a CEO, a management consultant, an academic, a member of government — you name it — that I would select over Greg to handle your savings and mine," he said.