Berkshire Hathaway stock steady after 5% drop, Greg Abel to succeed Warren Buffett

From Yahoo Finance: 2025-05-06 09:49:00

Berkshire Hathaway stock remained steady after a 5% drop following the board’s approval of CEO Warren Buffett’s successor, Greg Abel. Class A shares were close to $765,000, while Class B was near $510. Abel will officially take over on Jan. 1, 2026, surprising investors and analysts.

Wall Street expected Abel to take over Berkshire Hathaway, but the timeline was unknown. The news of Buffett stepping down caught many off guard, leading some investors to exit positions. Despite this, Berkshire Hathaway has historically outperformed the S&P 500, with a compound annual gain of 19.9%.

Berkshire Hathaway stock has returned 5,502,284% since 1965, outperforming the S&P 500’s 39,054% return. Year to date, the stock is up 13% despite recent drops, while the S&P 500 is down 4%. Analyst coverage on the stock is limited, with one Buy rating, three Holds, and one Sell.

Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre. For more in-depth analysis of stock market news and events, visit Yahoo Finance’s website. Stay updated on the latest financial and business news by reading Yahoo Finance’s articles.

Read more: Berkshire Hathaway stock steady after 5% drop follows Warren Buffett’s succession announcement