Warren Buffett, the chairman of Berkshire Hathaway and known as 'the oracle of Omaha', revealed plans to retire at the end of this year, causing a sharp decline in Berkshire Hathaway's stock price.
On the 5th (local time), Berkshire Hathaway Class B ended regular trading at $512.15 on the New York Stock Exchange. This was a decline of 5.12% ($27.65) compared to the previous trading day. Class A also fell 4.87% ($39,390) to finish at $769,960. Although both stocks rebounded in after-market trading by 0.24% ($1.25) and 2.3% ($17,743.48), respectively, they were unable to recover their losses.
The impact of Buffett announcing his retirement after 60 years was significant. On the 3rd, at the Berkshire Hathaway annual meeting held in Omaha, Nebraska, he stated that he would request the board to appoint Greg Abel, vice chairman of the institutional sector, as the new chief executive officer (CEO) at the end of this year.
Buffett designated Abel as his successor in 2021. However, since Buffett had previously stated that he had no plans to retire, many expect that Abel will become CEO after Buffett.
Buffett explained that the decision was an 'economic decision' based on the belief that Abel would lead Berkshire Hathaway better. He also mentioned that he has no plans to sell any Berkshire Hathaway shares even after retiring.