Berkshire shares left behind as S&P 500 rallies to record high
SkimNews Take
Berkshire's underperformance, despite broader market gains driven by geopolitical de-escalation, suggests its perceived value is increasingly decoupled from general market sentiment, reflecting investor focus on internal leadership transitions rather than external economic factors.
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- S&P 500 closed above 7,100, its first close above that level, up >9% month‑to‑date as U.S.–Iran tensions eased.
- Berkshire Hathaway A and B shares slipped to just under 1% month‑to‑date loss, widening the gap to 9.7% behind the S&P 500.
- Warren Buffett announced he will step down as CEO at the end of 2025; Berkshire shares have fallen >12% since the May 2 2025 record‑high close.
- Greg Abel has been leading Berkshire for 100 days, with early signs of strategic changes, as reported by the Wall Street Journal.
- Pan Macmillan's Harriman House will release "The Complete Financial History of Berkshire Hathaway, Second Edition" on April 28, adding fresh analysis ahead of the shareholders meeting.
Why it matters: Berkshire shareholders see a 12% decline since Buffett's stepping‑down announcement, while S&P investors enjoy a 9% monthly gain; the widening gap pressures the conglomerate’s leadership to justify performance before the upcoming annual meeting.
