Core Viewpoint - Berkshire Hathaway's A shares have declined by 14% since the leadership transition in May, marking one of the worst performances relative to the S&P 500 in decades, prompting investors to reassess the company's value post-Buffett [1][4] Group 1: Performance Comparison - Since Buffett announced the transfer of control to Greg Abel, Berkshire's A shares have dropped 14%, while the S&P 500 has risen by 11%, highlighting a stark contrast [1] - This period represents one of the worst relative performances for Berkshire against the S&P 500 since 1990 [3] Group 2: Historical Context - The current underperformance is historically significant, with only the early pandemic period showing worse results, as investors sold off stocks heavily impacting Berkshire's core holdings in insurance and financial services [4] - Buffett's investment strategy has historically yielded a remarkable 55,000% return for Berkshire since 1965, significantly outperforming the S&P 500 by 140 times [4] Group 3: Market Sentiment and Fundamentals - Despite the poor stock performance, Berkshire's operational performance remains strong, with profit growth reported across its BNSF railroad, utilities, and manufacturing sectors in Q2 [5] - Excluding currency fluctuations, Berkshire's operating profit grew by 8% year-over-year in Q2, but this positive data has not prevented investor sell-offs [6] Group 4: Valuation and Buyback Strategy - Berkshire's stock buyback plan was halted by Buffett in May 2024, with future repurchases contingent on the stock price being below its intrinsic value [7] - Some investors believe the recent stock price correction may create an opportunity for Buffett to resume buying shares, as the stock was previously considered overvalued [7]
5月来大跌14%，交班在即，伯克希尔的“巴菲特溢价”正在消失