Since Warren Buffett made public his plans to step down from the leadership of Berkshire Hathaway (NYSE: BRK.A), the investing conglomerate’s stock has struggled compared to the benchmark S&P 500.
Since his May 3 announcement, Berkshire’s share price has trailed the S&P 500 by 23 percentage points. At that time, the S&P 500 was trading at 5,686. It has since climbed to 6,256, posting gains of about 10%.
In contrast, Berkshire Hathaway’s stock has declined from its 2025 high of $539 at the time of the announcement to $470 as of press time, representing a nearly 13% drop.
The drop in Berkshire’s stock is notable given that, at the start of the year, it was one of the few equities outperforming the S&P 500 amid ongoing economic uncertainty.
While most stocks sank following the early April trade tariffs, the index has since rebounded to hit new record highs around 6,300.
Investor anxiety around Buffett’s retirement
Berkshire’s decline appears driven by growing investor anxiety over succession. The Oracle of Omaha has long been viewed as the company’s anchor, his departure seen as a loss of strategic discipline and investor confidence.
Market watchers suggest his retirement plans have introduced uncertainty around the future of Berkshire’s famously conservative and disciplined investment style.
Although Greg Abel has been named as Buffett’s successor, investors seem to question whether anyone can truly fill his shoes.
Adding to the pressure, Berkshire’s first-quarter earnings disappointed investors. Operating profit fell 14% year over year to $9.64 billion, weighed down by weaker insurance underwriting and railroad challenges.
Despite this, Berkshire’s cash pile grew to a record $347.7 billion from $334.2 billion as it reduced equity purchases.
The rising cash reserves have fueled speculation about potential acquisitions under new leadership, while others view them as a buffer against economic risks stemming from trade tensions.
Meanwhile, investors will be watching the next Berkshire Hathaway earnings results, with the company expected to report EPS of $5.24, down 2.6% from the prior-year quarter, on revenue of $98.5 billion.
Featured image via Shutterstock
