Berkshire Hathaway shares have come under sustained pressure since legendary investor Warren Buffett announced his plan to step down. The Omaha-based conglomerate is now trailing the broader market, with its Class B shares declining in six out of the past seven weeks.
Since May 3, 2025 — the day Buffett publicly revealed his succession plan — Berkshire’s stock has dropped over 12%, reducing its year-to-date gain to just 4.5%, notably below the 7% gain of the S&P 500. If losses continue through July, it would mark the company’s longest monthly losing streak since June 2022.
What’s more, Berkshire’s Class B shares recently closed below their 200-day moving average (MA200) — a key technical indicator — ending a 573-day streak above this threshold. This was the longest run since the Class B shares were introduced in 1996.
In recent communications, Buffett has acknowledged that Berkshire can no longer expect to outperform the market indefinitely. With an enormous cash reserve, he admitted that it has become increasingly difficult to find large-scale investments capable of moving the needle for the company’s bottom line.
“Given our current portfolio of businesses, Berkshire may perform slightly better than the average American company,” Buffett wrote in his 2023 annual letter to shareholders. “But expecting anything more than ‘a bit better’ would be wishful thinking.”
Berkshire’s vast portfolio includes assets across multiple industries — from BNSF Railway and GEICO, to See’s Candies and Berkshire Hathaway Energy — offering broad exposure to the U.S. economy.
Despite recent underperformance, Buffett’s long-term track record remains unparalleled. Since taking the reins in the 1960s, he has led Berkshire Hathaway to deliver annual returns double that of the S&P 500. From 1964 to 2024, the company’s total growth reached a staggering 5,502,284% — a figure few can rival.
Buffett’s exit marks a historic leadership transition in the world of investing. While a successor has already been named and Berkshire’s core strategy remains intact, investor sentiment reflects growing uncertainty in the post-Buffett era — as the market questions whether the firm can sustain its outperformance without the "Oracle of Omaha" at the helm.
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