From Yahoo Finance: 2025-06-08 07:19:00

Warren Buffett’s retirement announcement led to a 10.3% drop in Berkshire Hathaway shares from all-time highs on May 2. Despite this, shares rose about 1% on Friday, hinting at a possible end to the downturn. Buffett will step down on Dec. 31, with Greg Abel set to replace him as CEO.

Investors may be struggling with the idea of Buffett no longer leading the company, impacting stock performance. Berkshire’s investment in Apple has been highly profitable, helping maintain a $1 trillion market cap. Buffett’s impending retirement has caused shares to fall steadily, with only a few recent gains.

UBS analyst downgraded Berkshire slightly but still rates it a buy. The company is not expected to buy back shares soon, as Buffett believes the intrinsic value is higher than current stock prices. Berkshire may see other leadership changes, such as Ajit Jain possibly retiring from the insurance operation.

Greg Abel, Buffett’s successor designate, has been CEO of Berkshire Hathaway Energy since 2021. The insurance business, led by Ajit Jain, could see a change in leadership. Berkshire Hathaway has evolved into a conglomerate with various holdings, including insurance, railroads, utilities, and retail businesses.

Read more: Berkshire Hathaway shares sag since Buffett said he’s retiring