Warren Buffett steps down: $10 (€8,8) billion wealth shift in a day
Warren Buffett, a renowned investor, recorded a decrease in wealth of $10 (€8,8) 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, announced that by the end of the year, his deputy, Greg Abel, will take over the reins of the conglomerate. The very announcement of the departure of the symbol of the American stock exchange caused a 6% drop in BH's stock value.
Warren Buffett resigns. Lost $10 (€8,8) billion in a day
According to "Forbes," Berkshire's Class A shares fell from $809,000 to $757,000, (€715,100 to €669,150) and Class B shares from $540 to $506 (€477 to €447). 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 (€8,8) billion on Monday, down to $157.7 (€139.4) billion. It was reported that among the top billionaires, Buffett suffered the largest net loss on that day.
Buffett will still serve 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 ranked as the eighth most valuable company in the world by market capitalization, amounting to approximately $1.164 (€1) trillion. The company also holds record cash reserves of $347.7 (€307.4) billion, providing it with substantial financial flexibility.
