Berkshire Hathaway’s Stock Downgraded to Sell as Buffett Steps Down
Berkshire Hathaway's Class B shares (BRK.B) received a rare Sell rating from Keefe, Bruyette & Woods (KBW), citing concerns over Warren Buffett's succession and looming business challenges. The investment bank slashed its price target for Class A shares to $700,000, signaling a 5% downside risk.
Buffett's planned departure as CEO at year-end—while remaining board chairman—marks the end of a 60-year era. KBW analysts warn his reduced operational involvement creates "historically unique succession risk" that may pressure earnings and share performance. The stock has traded sideways since the leadership transition was announced this spring.
Macroeconomic uncertainty compounds these headwinds, with KBW noting emerging earnings challenges could persist. The downgrade reflects growing institutional skepticism about Berkshire's post-Buffett trajectory in volatile markets.
