"Lee reminded me that we have covered Buffett and Berkshire Hathaway for nearly 20 years, and since 2000 the company has outperformed the S&P 500 almost every single year. That streak is coming to an end. The stock has gone through a rocky period, and that kind of volatility is not what investors associate with Buffett's steady hand. Once Buffett publicly committed to stepping aside, the margin for error narrowed, and the market has become far less forgiving."
"The most troubling development we discussed was the departure of Todd Combs. As one of Buffett's two key proteges, Combs played a central role in portfolio management and in supporting Greg Abel, the executive expected to lead Berkshire going forward. When Combs left to take a role at JPMorgan Chase, it immediately raised a hard question. Who finds the next great ideas?"
Warren Buffett's performance has weakened relative to his historic standards, and he is expected to step down as CEO within weeks. Berkshire Hathaway's long streak of outperforming the S&P 500 since 2000 appears to be ending, with recent volatility contrary to Buffett's reputation for steadiness. Todd Combs' departure to JPMorgan Chase removed one of Buffett's key proteges and raised concerns about Berkshire's ability to identify future high-conviction investments like the firm's position in Alphabet. Berkshire now holds roughly $341 billion in cash, reflecting disciplined waiting for market corrections and more attractive valuations. The leadership transition and portfolio sourcing gap heighten investor anxiety.
Read at 24/7 Wall St.
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