Berkshire Hathaway's Stock Decline Post-Buffett Announcement

Since Warren Buffett announced his intention to eventually “retire,” Berkshire Hathaway's stock performance has seen a notable decline, underperforming the S&P 500 index in 2025. The Omaha-based conglomerate’s B-class shares have recorded losses in six of the past seven weeks and are on track for a third consecutive month of declines. Since the “Oracle of Omaha” announced his plans to hand over the reins on May 3, the conglomerate’s share price has fallen by more than 12%, trimming its year-to-date gains to 4.5%, lagging the S&P 500’s 7% increase.

Analyzing Current Performance

If the stock closes lower in July, it would mark the longest streak of monthly declines since June 2022. Berkshire's B-class shares recently fell below their 200-day moving average after an impressive record of staying above that level for 573 consecutive days, its longest run above that level since the B-class shares were created in 1996.

Buffett's Measured Expectations

Buffett himself has tempered expectations for continued market outperformance. He pointed out that, given Berkshire’s immense amount of deployable cash, it is difficult for any investment to have a significant impact on its overall performance. Buffett stated that Berkshire’s diversified, high-quality portfolio of businesses – from BNSF Railway to See’s Candy – should deliver “slightly better” performance than the average American company, but any expectations beyond that are unrealistic.

Buffett's Statements on Future Performance

“With our present mix of businesses, Berkshire should slightly outperform the average American corporation and, more important, should also operate at materially less risk of permanent capital loss,” Buffett said in his 2023 annual letter. “Anything beyond ‘slightly better,’ though, is wishful thinking.”

Buffett's Unmatched Track Record

Despite this, Buffett’s long-term performance record is unmatched. Berkshire’s business spans 40 industries and 60 companies, and its average annual return has been double that of the S&P 500 since Buffett first took the helm in the 1960s, with a total return from 1964 to 2024 of 5,502,284%.

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Important Disclaimer

This analysis provides an overview of Berkshire Hathaway's stock performance and does not constitute investment advice. Investors should conduct their own research and consult a financial advisor before making any investment decisions.