Warren Buffett's departure is putting a 'succession discount' on Berkshire Hathaway stock, a strategist says

"Barbara Goodstein, a managing partner at R360, an invitation-only investment and networking group for ultra-high-net-worth individuals, told CNBC on Monday that longtime Berkshire CEO Warren Buffett's impending departure offered a "lot of opportunity" for investors. Buffett, 95, is set to step down as the CEO of Berkshire at the end of 2025 after nearly 60 years in the role. He will be replaced by Greg Abel, who heads the firm's non-insurance businesses and will stay on as its chairman."

""We are strong into Berkshire Hathaway, we've always respected their moves," she said, adding: "We're calling this a 'succession discount.'" "We think the stock is trading below what it will become because everybody is waiting to see how Greg Abel performs." Berkshire Hathaway's stock price is up nearly 11% this year. Goodstein pointed to Berkshire's cash pile as particularly intriguing, saying she believed the firm had been "sitting on it" to allow Abel to make a "big move in 2026.""

Warren Buffett will step down as Berkshire Hathaway CEO at the end of 2025 after nearly 60 years in the role, with Greg Abel set to replace him and remain chairman. Berkshire stock is perceived to be trading at a "succession discount" as investors await Abel's performance. The stock is up nearly 11% year-to-date. Berkshire increased its cash pile to a new record of more than $350 billion (or $382 billion excluding certain payables) and posted a 34% year-over-year increase in operating income to $13.5 billion. The large cash reserve suggests capacity for major investments, potentially in energy or defense, in 2026.

Read at Business Insider