Berkshire Hathaway’s Market Performance and Leadership Transition

Berkshire Hathaway (BRK.A, BRK.B), once a modest textile manufacturer, transformed into a financial powerhouse under Warren Buffett's leadership since 1965. The conglomerate's stock skyrocketed by over 5,520,000% through 2024, dwarfing the S&P 500's 39,000% total returns. Its shift to insurance, railroads, energy, and consumer staples—coupled with a robust equity portfolio—solidified its market-beating reputation.

Recent performance tells a different story. Over the past year, Berkshire shares gained just 7%, trailing the S&P 500's 20% rally. The slowdown coincides with Buffett's May announcement of his impending retirement at age 95, with Berkshire Energy CEO Greg Abel set to succeed him. Markets now weigh whether Berkshire's disciplined capital allocation can endure this leadership transition.