Warren Buffett is resign As CEO of Berkshire Hathaway (BRK-A,, BRK-B) after having led the company to a series of outperformance of actions against the S&P 500 (^ GSPC).
From 1965 to 2024, the stock of Berkshire Hathaway rendered 5,502,284%. During this same period, the S&P 500, with dividends included, provided a yield of 39,054%. The annual gain made up of Berkshire Hathaway during this period raised 19.9%. The yield of the S&P 500 was 10.4%.
By digging the details of Buffett outperformance, most of the Berkshire Hathaway gains have occurred in the first 20 years since Buffett took control of the company. The coherent resilience of Berkshire compared to the wider market also stands out. During the 13 times, the S&P 500 has closed the year down in the past 60 years, Berkshire has dropped only to the reference index only twice.
“The long -term trend is up,” said Buffett at the annual meeting of Berkshire Hathaway shareholders on Saturday.
During the meeting, Buffett addressed the growing battery of Berkshire Hathaway. At the end of the first quarter, Berkshire had raised a pile of cash of 347.7 billion dollars. Buffett noted that his confidence in the collection of money and not feeling the need to be fully invested at any time is one of the reasons why he has succeeded in such a long period.
“We prefer to have conditions that have developed where we would have, like $ 50 billion or something like that,” he said. “But it is simply not the operation of the business.”
Buffett added that if he was making investments simply in order to lower Berkshire's cash funds to $ 50 billion, “it would be the most stupid thing in the world to invest in this way”.
Saturday, buffett announced that he was planning to resign From his role as CEO of Berkshire Hathaway and passes his role on Greg Abel.
“I think that is the moment when Greg (Abel) should become director general of the company at the end of the year,” said Buffett, who chaired his 60th annual meeting. “And I want to highlight the directors effectively and give this as my recommendation.”
Berkshire Hathaway's Board Unanimously approved this decision on Sunday. Abel will become CEO on January 1, 2026 and Buffett will remain chairman of the board of directors.
Josh Schafer is Yahoo Finance journalist. Follow him on x @_joshschaffer.
Read the latest financial and commercial news from Yahoo Finance
