Buffett Steps Down, Berkshire Hathaway Shares Lag Behind S&P 500
Warren Buffett’s decision to step down from his position as chief executive officer (CEO) of Berkshire Hathaway is still having an impact on the investment company.
Since Buffett announced his retirement plan in May 2025, Berkshire Hathaway’s share performance has lagged behind the US stock market index, the S&P 500.
According to Yahoo Finance, Saturday (16/5/2026), Berkshire Hathaway’s Class A shares reportedly fell by about 10 percent during that period. In contrast, the S&P 500 index actually strengthened by up to 32 percent.
At that time, he announced that he would hand over the company’s leadership to an insider at Berkshire, Greg Abel, starting in early 2026.
The announcement was said to have surprised many shareholders because it was made at the end of Buffett’s annual question-and-answer session, which lasted about five hours.
Buffett said that only his two children, Howard and Susie Buffett, and several specific board members knew about the plan before it was announced to the public.
This year’s annual Berkshire Hathaway meeting marked the beginning of a new era for the company. For the first time in six decades, Buffett was no longer the main focus of the event.
At the meeting, Warren Buffett chose to sit in the front row of the audience as a symbol of support for the leadership transition to Greg Abel, who led the event from the stage.
The annual event still maintained the relaxed atmosphere typical of Berkshire Hathaway. One of the moments that attracted attention was the ceremony of “retiring” a jersey with the number 60 to honor Buffett’s six decades of leadership at the company.
Although Abel’s debut performance was considered solid operationally, some investors felt that the atmosphere at the annual Berkshire meeting had begun to change without the active presence of Buffett and the late Charlie Munger on stage.
The change was evident in the enthusiasm of the participants, which was said to be less than in previous years. Several empty seats were visible in the arena, while the queues in the exhibition area were also shorter than usual.
Some investors said they missed Buffett and Munger’s style, which for decades had been known for sharing investment insights as well as life philosophies in the annual forum.