For decades, investors treated Warren Buffett’s name like a gold standard.
But since the 94-year-old billionaire announced he’s stepping down from his legendary post at Berkshire Hathaway, the markets have been reacting with unease—and his company’s iconic stock is feeling the pressure.
Berkshire Shares Slide After Buffett’s Exit Plan
Berkshire Hathaway’s Class A shares, which are often seen as long-term treasures in the investing world, have dropped by 14% since Buffett announced in May that he would be retiring.
His longtime right-hand man, Greg Abel, is set to take over as CEO starting January 1 next year.
In contrast, the broader S&P 500 index has jumped 11% in the same period.
That 25-point gap is the largest divergence between Berkshire and the market since 1990, according to Financial Times.
Legacy Stocks Under Selling Pressure
Before the retirement announcement, Berkshire shares hit a staggering all-time high of $812,855 each in early May. But the momentum didn’t last.
Since then, nervous investors have started offloading shares, perhaps unsure if the company’s future without Buffett will match its legendary past.
These shares aren’t just any stock—they’re often passed down like heirlooms.
Many were originally bought when Buffett was just getting started and have been kept in families for generations.
Who’s Selling? We May Soon Find Out
It’s still unclear who’s behind the recent wave of sell-offs.
But when institutional investors and hedge funds release their quarterly filings later this month, we may start to see a clearer picture.
Despite the dip in share price, it’s not as though Berkshire is floundering—quite the opposite.
Several of its core businesses, including BNSF Railway and its utilities and retail arms, actually reported strong profits in the second quarter.
Investors Say It’s Too Early to Panic
Some long-time shareholders are urging patience.
They argue that three months is far too short a window to judge a company like Berkshire, especially when Buffett’s entire investment philosophy is built on long-term thinking.
Back in April, many investors even saw Berkshire as a safe haven when former President Trump made headlines with new tariff announcements.
But now that those worries have cooled and tech stocks are rallying, money is flowing back into more aggressive growth plays.
Tech Surge Leaves Berkshire Looking Less Trendy
With artificial intelligence and tech giants dominating the market right now, investors seem to be chasing faster returns.
But Berkshire’s portfolio has never been big on cutting-edge tech.
“What’s really moving in this market is technology,” said Bill Stone, chief investment officer at Glenview Trust, one of Berkshire’s investors.
“And we know that’s not really Buffett’s thing.”
Buffett Stops Buying His Own Stock and Starts Selling Off Others
Buffett, who has famously repurchased Berkshire shares when he believes they’re undervalued, hasn’t bought any since May 2024.
Instead, Berkshire has been a net seller of stocks for 11 straight quarters, bringing its cash reserves to a jaw-dropping $344 billion.
A large part of those sales came from the banking sector, with a $1 billion exit from Citigroup and a $2 billion trim from Bank of America among the highlights.
Cutting Back on Big Names and Banking Bets
Berkshire has clearly been scaling down its exposure to U.S. banks.
Larry Cunningham, a corporate governance expert from the University of Delaware, believes this move reflects a more cautious or even bearish outlook on the banking industry.
And Buffett isn’t just pulling back from banks.
Earlier this year, he sold off large stakes in Apple, one of Berkshire’s most high-profile holdings in recent years.
Buffett’s Moves Still Shake Markets
Even as he prepares to step aside, Buffett’s investment decisions continue to ripple across global markets.
When he increased his holdings in five Japanese trading companies earlier this year, their stock values immediately shot up.
The same thing happened when Berkshire snapped up $563 million worth of shares in companies like Occidental Petroleum, Sirius XM, and VeriSign last year.
What’s Next for Berkshire Without Buffett?
As Greg Abel prepares to take the helm, investors are facing an emotional turning point.
Can Berkshire continue its legendary run without the “Oracle of Omaha” steering the ship?
The short-term dip may reflect nerves more than facts—but one thing’s for sure: Wall Street is watching closely.