Core Insights - Warren Buffett's exit from the CEO role at Berkshire Hathaway marks a significant transition, prompting a reassessment of the company's valuation by the markets [1][2] - The leadership change has led to a decline in Berkshire Hathaway's stock price, trading at $493, down 0.72% since Greg Abel took over, although shares have increased over 5% in the past year [2] - There is ongoing debate about the potential loss of the "Buffett premium," which has historically provided Berkshire with a higher valuation due to Buffett's reputation and track record [3][4] Market Reaction - The transition has created psychological uncertainty among investors, who have historically linked Berkshire's performance to Buffett's decision-making [2][5] - Concerns have arisen regarding how the company will manage its cash reserves and whether its acquisition strategy will change under Abel's leadership [7] - Supporters argue that the recent stock decline is more about market sentiment than the company's fundamentals, emphasizing Berkshire's profitable diversified portfolio [7]
Here's how Warren Buffett's stock has performed since Berkshire exit