Berkshire Hathaway Faces Stock Decline Amid Buffett's Planned Exit

Berkshire Hathaway shares experienced a sharp decline following Warren Buffett's announcement that he will step aside as CEO, with vice chairman Greg Abel expected to succeed him. The company has faced recent headwinds, including a 14% drop in operating income due to insurance underwriting losses and foreign exchange impacts, and it has scaled back riskier insurance operations, including significant workforce reductions at Geico. Berkshire has also paused stock buybacks for three consecutive quarters, citing both a new 1% buyback tax and Buffett’s disciplined approach to capital deployment in uncertain markets. Despite these challenges, the company reported a record cash balance and remains one of the most valuable and closely watched conglomerates globally. Buffett reassured shareholders that he would not sell his shares and may remain involved in some capacity, expressing confidence in Abel’s leadership. Investors are closely monitoring Berkshire’s next earnings announcement for further guidance amid ongoing market turbulence.