"Though the AI revolution will eventually lead to broader economic gains at some point over the medium term, at least in my opinion, it's tough to tell if Berkshire Hathaway has what it takes to keep outperforming the S&P 500 as it has in decades past, especially since the S&P is arguably more of an AI-heavy index than it was before ChatGPT more than a year after the pandemic lockdowns lifted."
"With just two months left in Buffett's reign as CEO of the $1 trillion titan, all focus will shift on the Oracle of Omaha's successors. And you can be sure that the volatility could take things up a few notches as long-time shareholders grow perhaps a bit more critical of the likes of incoming new CEO Greg Abel and the other hand-picked successors that will finally get to be in the driver's seat (if they weren't already)."
Berkshire Hathaway is underperforming the S&P 500 while the index surges amid an AI-driven tech rally and mixed earnings. Some large tech shares have not advanced despite generally solid results, and investors question whether Berkshire has enough AI exposure to partake in the rally. Warren Buffett will step down as CEO in two months, focusing attention on successors Greg Abel, Ajit Jain, Ted Weschler, and Todd Combs and raising the potential for increased volatility. Shareholders will watch how public stock investing strategy evolves while core value principles are likely to remain influential.
Read at 24/7 Wall St.
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