Here's how Warren Buffett's retirement plan is battering Berkshire stock

Core Viewpoint - Warren Buffett's announcement to step down has led to a significant decline in Berkshire Hathaway's stock performance compared to the S&P 500, raising concerns about the company's future leadership and investment strategy [1][3]. Group 1: Stock Performance - Since Buffett's announcement on May 3, Berkshire Hathaway's stock has underperformed the S&P 500 by 23 percentage points, with the S&P 500 rising approximately 10% from 5,686 to 6,256 [1]. - Berkshire's stock price fell from a 2025 high of $539 to $470, marking a nearly 13% decline [2]. Group 2: Investor Sentiment - Investor anxiety regarding Buffett's retirement is evident, as he has been seen as the cornerstone of the company's strategic discipline and investor confidence [3]. - Despite Greg Abel being named as Buffett's successor, there are doubts about whether he can effectively replace Buffett [4]. Group 3: Financial Performance - Berkshire's first-quarter operating profit decreased by 14% year-over-year to $9.64 billion, impacted by weaker insurance underwriting and challenges in the railroad sector [4]. - The company's cash reserves increased to a record $347.7 billion from $334.2 billion, raising speculation about potential acquisitions under new leadership [6]. Group 4: Future Expectations - Investors are anticipating the next earnings report, with expectations of an EPS of $5.24, reflecting a 2.6% decline from the previous year, and revenue projected at $98.5 billion [6].