We see Berkshire Hathaway Chairman Warren Buffett giving a speech on screen at the Berkshire Hathaway Annual Shareholders Meeting held in Omaha, Nebraska, USA on May 3, 2025.
Brendan McDermid | Reuters
Berkshire Hathaway stocks are hanging steadily to imagine investors resigning from the conglomerate’s new path after 60 years of legendary run, as they handle Warren Buffett’s surprise announcement.
Buffett, 94, chose his final moments at Berkshire’s annual meeting in Omaha, Nebraska, telling loyal shareholders it was time for Greg Abel, the vice-chairman of the non-insurance business, to replace CEO. The board voted unanimously on Sunday, winning President and CEO Abel on January 1, 2026, with Buffett as chairman.
Class B stocks fell 2.9% in pre-market trading on Monday after hitting an all-time high of $539.80 on Friday. Class A stocks fell 2.8% after closing at a record high of $809,350 each. Berkshire issued Class B shares in 1996 at a price equivalent to one-third of the Class A share. In 2010, Berkshire Class B stocks split 50-1.
“Shareholders should welcome this transparent transition, but Warren should be confident that they won’t go anywhere,” said MacRae Sykes, Gabelli Fund’s portfolio manager and Berkshire shareholder. “Making his position as chair means he can continue to mentor Greg and Berkshire leaders, while also providing additional intellectual capabilities when inevitable time arises for more key capital allocation.”
It marks the end of Berkshire’s epic era. This was a New England textile mill that Buffett failed 60 years ago when he used an investment partnership where he ran and took control. Berkshire has grown into a unique juggernaut worth almost $1.2 trillion worth of its investment in insurance, rail, retail, manufacturing and energy. As Berkshire stock reached a new peak on Friday, Buffett is passing his reins on particularly high notes.
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Berkshire Hathaway Class B stock
“Buffett has left a company that doesn’t rely on his investment capabilities and has a number of companies with strong cash flows,” UBS Berkshire analyst Brian Meredith said in a memo. “Operationally, we expect little change in BRK and culture/strategic changes.
The stock also likely responded to Berkshire’s first quarter results, with a 14% drop in operating revenue due to a 48.6% drop in insurance-based profits. Berkshire said the Southern California wildfires caused $1.1 billion in losses over the period.
Berkshire’s stocks have surpassed the S&P 500, up nearly 19% this year. Investors looking for a relatively safe place to hide can find Berkshire attractive due to its huge insurance empire and the defensive nature of the conglomerate’s unparalleled balance sheet.
