Warren Buffett steps down, Berkshire shares tumble 6%
Warren Buffett, a renowned investor, recorded a decrease in wealth of $10 (CAD 13,8) billion after announcing that he would step down as CEO of Berkshire Hathaway, reports "Forbes". Two types of the "Oracle" of Omaha company shares fell by 6%, affecting its market value.
Warren Buffett announced that after over 55 years, he will stop leading Berkshire Hathaway. The 94-year-old Buffett, a famous financier and billionaire, made it known that by the end of the year, his deputy, Greg Abel, will take over the reins of the conglomerate. Just the announcement of his departure, a significant figure in the American stock exchange, triggered a 6% drop in BH's stock value.
Warren Buffett resigns, loses $10 (CAD 13,8) billion in a day
According to "Forbes," Berkshire's Class A shares fell from $809,000 to $757,000, (CAD 1,1 million to CAD 1,05 million) and Class B shares from $540 to $506 (CAD 746 to CAD 699). Analysts suggest that the stock value decline is more closely linked to Buffett's departure announcement than the company's financial performance. The first quarter results fell below Wall Street's expectations, but it was the leadership change at BH that sparked the most concern among investors.
According to Forbes estimates, Buffett's wealth shrank by over $10 (CAD 13,8) billion on Monday, to $157.7 (CAD 217.8) billion. It was reported that among the top billionaires, Buffett experienced the largest net loss on that day.
Buffett will still continue as chairman of the board after retiring. The CEO position will be taken over by Greg Abel, the current vice-chairman of BH, responsible for the insurance segment. Abel gained experience at consulting firm PwC and later at CalEnergy, which evolved into Berkshire Hathaway Energy.
As of May 4, 2025, Berkshire Hathaway was the eighth most valuable company in the world by market capitalization, amounting to approximately $1.164 (CAD 1.6) trillion. The company also holds record cash reserves of $347.7 (CAD 480.3) billion, providing it with substantial financial flexibility.
