Berkshire Hathaway shares fell sharply on Monday after Warren Buffett, the legendary investor and long-time CEO, stunned shareholders with the announcement that he will step down as chief executive at the end of 2025.
The news, delivered at the company’s annual meeting over the weekend, sent shockwaves through the investment community and triggered a notable sell-off in Berkshire’s stock.
In Monday’s trading, Berkshire Hathaway’s Class B shares dropped as much as 7%, hitting a low of $502.80 before paring some losses. The decline reflects investor uncertainty about the future of the $1.2 trillion conglomerate without Buffett at the operational helm-a figure widely regarded as one of the greatest investors in history.
Analysts attribute much of the stock’s long-term premium to the so-called “Buffett premium,” a measure of investor confidence tied directly to his leadership and reputation.
Buffett’s announcement also comes as Berkshire reported first-quarter earnings that missed analyst expectations, adding to the downward pressure on the stock.
Broader market weakness and concerns about new trade policies contributed to the risk-off sentiment, but most market watchers pointed to Buffett’s retirement as the primary driver behind the sell-off.
While the transition marks the end of an era, Buffett will remain as chairman of the board, providing continuity and reassurance to investors. Greg Abel, Berkshire’s vice chairman of non-insurance operations and Buffett’s long-designated successor, will assume the CEO role at the start of 2026.
Abel has overseen much of Berkshire’s business empire in recent years, but investors are closely watching how he will handle capital allocation and investment decisions going forward.
Despite the immediate volatility, many analysts and long-term shareholders believe Berkshire Hathaway remains fundamentally strong and well-positioned for the future.
However, the leadership change introduces a period of transition and uncertainty, as the market adjusts to life after Buffett’s remarkable six-decade tenure.