"Warren Buffett is finding out just how much he's worth to Berkshire Hathaway shareholders. The investing icon sent shockwaves through the business world in May when he revealed he would step down as Berkshire's CEO at the end of this year, after nearly six decades in charge. Berkshire's Class B shares had closed at a record $540 going into the company's annual shareholder meeting. They've plunged 12% to below $480 since Buffett broke the bad news,"
"David Kass, a finance professor at the University of Maryland and longtime Buffett blogger, told Business Insider that the underperformance reflected not just the "evaporation" of what's often called the " Buffett premium" - the extra value placed on the stock to reflect Buffett's unique contributions - but also the stock getting ahead of itself before the meeting, and the boom in AI stocks such as Nvidia and Microsoft driving the S&P to fresh highs."
"Berkshire was a failing New England textile mill when Buffett acquired it in 1965. Over the next 60 years, he transformed it into one of the world's biggest companies with roughly $400 billion in annual revenue, 400,000 employees, and a $1 trillion market value. Today, Berkshire is the largest shareholder of massive companies such as Coca-Cola and American Express, and fully owns scores of businesses, inc"
Warren Buffett will step down as Berkshire Hathaway CEO at year-end, prompting a 12% drop in Class B shares from a $540 record to below $480 while the S&P 500 rose about 20% over the same period. Berkshire has built a record cash pile after trimming its Apple stake and facing difficulty finding attractive bargains. Successor Greg Abel could inherit nearly $400 billion of dry powder to deploy. Buffett transformed Berkshire from a failing textile mill into a global conglomerate with roughly $400 billion in annual revenue, 400,000 employees, and a $1 trillion market value, owning large stakes in Coca-Cola and American Express.
Read at Business Insider
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