The Trial Balance is CFO.com’s weekly preview of stories, stats and events to help you prepare.
Part 1 — Berkshire’s shareholder letter indirectly lays out new CFO’s mandate
In his first annual letter as CEO of Berkshire Hathaway, Greg Abel used the opening pages to restate the company’s culture, capital allocation principles and approach to risk. The letter reads as a detailed outline of how Berkshire intends to operate, with an emphasis on stewardship, financial strength and long-term value creation.
Towards the end of that broader framework, Abel also addressed leadership succession in the finance function. Marc Hamburg, Berkshire’s CFO since the early 1990s, will transition his CFO responsibilities in June 2026 and retire in June 2027. Charles Chang, currently CFO of Berkshire Hathaway Energy, will succeed him.
The retirement was previously announced in December, and the letter places the transition within the broader operating philosophy Abel outlines. That philosophy is informed in part by the leadership team’s background. Both Abel and Chang previously led together at Berkshire Hathaway Energy, as CEO and CFO, respectively. In the letter, Abel notes that the energy business generated $8.4 billion in net cash flow from operations in 2025 and is entering a significant capital investment cycle tied to rising electricity demand and wildfire mitigation.
Although Abel previously oversaw Berkshire’s non-insurance operations, he writes that insurance will remain the company’s core, underscoring the central role float continues to play in Berkshire’s capital structure. The business differs from many of Berkshire’s other subsidiaries in that it operates in a regulated environment, where returns are earned through approved rate structures and long-term infrastructure investment. Berkshire is attempting to make changes to this part of its business currently, as wildfire court cases continue to impact the company.
The themes that define the operating model appear throughout the broader letter. Abel writes that shareholders’ capital “does not belong to us” and describes the company’s role as one of stewardship. He also states that “the CEO is responsible for serving as Chief Risk Officer — there is no more important duty.” That framing situates risk oversight and capital discipline at the center of Berkshire’s model, the same model that incoming CFO Chang will help support.
The scale of that responsibility is massive. At year-end 2025, Berkshire held more than $370 billion in cash and U.S. Treasury holdings and reported $176 billion in insurance float. The company generated $44.5 billion in operating earnings and $46 billion in net cash flow from operating activities during the year. Abel describes the balance sheet as “fortress-like,” noting that liquidity provides resilience in adverse conditions and flexibility to act when opportunities arise.
The letter also outlines how Berkshire approaches deploying capital. Abel reiterates that investment decisions are judged by their long-term impact on intrinsic value per share. Just like former CEO Warren Buffett’s approach, the company focuses on businesses it understands, with durable economics and managers who think like owners.
Share repurchases are also part of the strategy when Berkshire’s stock trades below a conservatively assessed estimate of intrinsic value. The company’s position on dividends is unchanged, with earnings retained only when management believes those dollars can create more value than they would if returned to shareholders. Abel closes the letter in part by making clear that the focus remains on financial durability, measured capital allocation and gradual growth in per-share value over time.
Part 2 — This week
Here’s a list of important market events slated for the week ahead.
Monday, March 2
- S&P Global U.S. Manufacturing PMI, February final
- ISM manufacturing index, Feb.
Tuesday, March 3 — None scheduled.
Wednesday, March 4
- ADP employment, Feb.
- S&P Global U.S. Services PMI, February final
- ISM Non-Manufacturing Index, Feb.
- Fed Beige Book
Thursday, March 5
- Initial jobless claims
- U.S. productivity, Q4 preliminary
- Import price index, Jan.
Friday, March 6
- U.S. employment report, Feb.
- U.S. unemployment rate, Feb.
- Retail Sales, Jan.
- Business Inventories, Jan.
- Consumer Credit, Jan.
Part 3 — Weekly listen: Mashreq Group CFO Norman Tambach
On “Fintech Futures” at Finnovate Europe 2026, Norman Tambach, group CFO of Mashreq, a UAE-based bank operating across the Middle East and South Asia, outlined how the bank evaluates technology investment. Following its 2025 results and a hybrid Tier 1 issuance, Tambach said every initiative begins with a defined business case. “Before you can really start your project, you have to do a kind of an executive summary,” he said, including budget, partners and measurable outcomes. KPIs are set up front and later reviewed “whether they deliver.”
He pointed to Mashreq’s NEO digital banking platform, built in the UAE and expanded to Egypt and Pakistan, as an example of growth tied to scale and viability. Further expansion is possible, he said, but only “if there’s a good business case,” particularly in markets where separate tech infrastructure and regulatory requirements affect returns.
Within finance, Tambach described a “management reporting factory” using AI to automate data analysis and reporting. The goal is to streamline production while finance teams focus on interpretation. “We have to own it and we have to understand it,” he said, emphasizing internal accountability for the tools deployed.”
