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Warren Buffett, Chairman of Berkshire Hathaway. (Photo: Yonhap News) |
[Alpha Biz= Paul Lee] Omaha, NE — Just two months after Warren Buffett announced his retirement, shares of his investment firm Berkshire Hathaway have dropped more than 10%, reflecting investor uncertainty about the company’s future without the legendary investor at the helm.
Class A shares of Berkshire Hathaway closed at $727,455 on July 3, down 10.1% from $809,350 on May 2, the day before Buffett announced his retirement. Class B shares, which are priced at 1/1,500th of the Class A shares, fell by a similar margin—from $539.80 to $485. Over the same period, the S&P 500 index gained 10.4%.
“This level of underperformance is surprising, especially since Buffett remains CEO until December 31,” said David Kass, a finance professor at the University of Maryland, in a recent interview with CNBC.
At Berkshire’s annual shareholders meeting in May, Buffett announced his plan to step down by year-end and named Greg Abel, vice chairman of the company’s non-insurance operations, as his successor.
Despite stepping away from the CEO role, Buffett told The Wall Street Journal that he has no intention of simply retiring to a quiet life. “Even if I’m retired, I don’t want to just sit at home and watch TV dramas,” he said, adding that he will continue to come into the office every day as usual.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
