From Yahoo Finance: 2025-05-05 16:12:00

Berkshire Hathaway saw a more than 5% drop in shares following the board’s approval of Greg Abel as Warren Buffett’s successor starting in 2026. Class A shares hit $768,719 and Class B shares fell to around $512 each. The transition will officially take place on Jan. 1, 2026, with Buffett remaining as chair.

Abel, who oversees non-insurance businesses, was confirmed as Buffett’s successor in 2021, but the specific timeline was previously unknown. Investors were surprised by the announcement, with many assuming Buffett would lead until his passing. Berkshire Hathaway is the seventh-largest S&P 500 company with a market cap of about $1.1 trillion.

Abel, who joined Berkshire after an acquisition in 1999, emphasized the importance of the company’s $300 billion cash reserve during Saturday’s meeting. He stated that this cash pile is a strategic asset, allowing Berkshire to weather challenges independently. Buffett confirmed he has no plans to sell Berkshire stock and will still be available for advice if needed.

Under Buffett’s leadership since 1965, Berkshire Hathaway’s per-share value has compounded at a 19.9% rate, outperforming the S&P 500’s 10.4% annual gain. Year to date, Berkshire Hathaway shares are up over 13%, surpassing the S&P 500’s 4% decline. The company has been accumulating cash reserves in recent years, positioning it well for future opportunities.



Read more at Yahoo Finance: Berkshire Hathaway stock drops after board approves CEO Warren Buffett’s successor