Berkshire Hathaway actions fall after the Board approved the successor of CEO Warren Buffett

Berkshire Hathaway (Brk-a, Brk-b) fell more than 5% on Monday as a conglomerate advice he said He had unanimously approved the appointment of the Vice President of the CEO of Warren Buffett, Greg Abel, as his successor, from 2026.

Class A shares dropped to $ 768,719 each while Class B shares decreased to almost $ 512 each.

Buffet announced the change of CEO Saturday at the 60th Annual Berkshire Hathaway Meeting. The transition will take place at the end of the year, and Abel took over official on January 1, 2026. Buffett will still be president, the Council said.

Buffett confirmed Abel, who oversees the company’s non -insurance business, as a successor in 2021. But so far, the specific time line for the delivery of buffett on the kingdoms was unknown to investors.

“I think this still took many investors out of guard,” said Senior Jones Senior Analyst Kyle Sanders. “I think there is a good part of the base of the investors who only thought Warren will continue to run the company until he died.”

Berkshire Hathaway is the seventh largest company in S&P 500 (^Gspc), with a market cap of about 1.1 trillion dollars.

Abel joined Berkshire as part of the acquisition of what became Berkshire Hathaway Energy in 1999.

During Saturday meetingAbel spoke in the long term about his opinion on the current perspectives of Berkshire Hathaway, in particular the more than $ 300 million in cash that the company currently has. He said this pile of money is a “huge asset for the company”.

“We recognize it as a strategic asset and allow us to resist difficult times and … not depending on anyone,” said Abel, who added, “we will never be dependent on a bank or another part of Berkshire to succeed.”

More information on the movements of the actions of Berkshire Hathaway and the action of the current market.

Buffett said he does not plan to sell Berkshire shares as a result of the change and that it will not be far if necessary.

“I would still hang up and in some cases it could be useful, but the final word would be what Greg said, in operations, in the deployment of capital, whatever it is,” said Buffett.

Since Berkshire buffett acquisition in 1965, the company’s action value has been composed of a 19.9% ​​rate, almost double the average annual gain of 10.4% of the S&P 500 and has a performance of 5,502,284% for shareholders.

Year to date, Berkshire Hathaway shares have increased more than 13%, exceeding S&P 500, which has dropped by 4%.

Berkshire Hathaway has accumulated money in your balance over the past two years.