Warren Buffett's Thanksgiving letter reinforces the end of the Buffett era

Core Insights - Warren Buffett is accelerating the distribution of his estate to his three children, converting 1,800 Class A shares into Class B shares for their foundations, while retaining a significant portion of his shares until investors are comfortable with his successor, Greg Ael [1] Company Transition - Buffett's announcement marks the end of an era for Berkshire Hathaway, as he will no longer write the annual letter or speak at the annual meeting, indicating a significant transition for the company [2][3] - The sentiment among long-term shareholders reflects nostalgia and recognition of Buffett's 60-year leadership, which has yielded substantial returns for investors [4][5] Market Performance - Since Buffett announced his intention to step down, Berkshire Hathaway's stock has declined by approximately 5%, contrasting with a 20% increase in the S&P 500 during the same period, suggesting a potential "Buffett premium" in the stock's valuation [8][12] - The company's reduced stake in Apple, one of its largest equity holdings, may also contribute to the stock's underperformance, as Apple has lagged among major tech stocks this year [9][12] Future Considerations - The new leadership under Greg Ael will face the challenge of managing over $300 billion in cash on Berkshire's balance sheet, which is a critical factor for the company's future strategy [11][12] - The transition away from Buffett's leadership is expected to change the dynamics of the company's stock performance and investor sentiment moving forward [13]