And as analyst Russ Moud sums it up Reuters, investors “It is not yet convinced that Berkshire Hathaway will be the same company without warren Buffett and Charlie Munger at the controls “. Clearly, the conglomerate will have to prove itself without its two emblematic figures (Charlie Munger, the main partner of Warren Buffett, died in late 2023).
How Warren Buffett influences Belgian strategists: “There is one point that we do not speak enough: his eternal optimism”
And it is also the personal finances of the boss who pay the price. According to ForbesBuffett saw his fortune melt from $ 26 to 27 billion between early May and early August, due to the fall of the title Berkshire Hathaway, of which he holds the vast majority. From the days following the announcement of his departure, he had already lost almost 9 billion, according to the Bloomberg Billionaires Index.
Other causes
Then, the performance discrepancy is also explained by the context. In recent months, Wall Street has been carried by the flight of major technological values and a revival of risk for the risk. However Berkshire Hathaway, with his diversified portfolio in so -called traditional sectors (insurance, energy, industry, etc.) and his cautious style, did not benefit from this general euphoria, according to analysts. On the contrary, the title has been lagging behind, while more “glamorous” actions (like the Magnificent Seven) flambé.
In addition, some specific bad news have not helped. In early August, the group announced a charge of $ 3.8 billion to depreciate its participation in Kraft Heinz, one of its flagship investments in bad shape. What not to reassure the markets.
Warren Buffet, the last dinosaur of finance which does not believe in bitcoin or diversity
Note that analysts do not shout at disaster. In any case, Berkshire Hathaway opens a new page in its history. And Warren Buffett wanted to be reassuring for the future. He said he had “No intention to sell the slightest action Berkshire Hathaway “ And said he was convinced that “Berkshire’s prospects will be better under the direction of Greg [Abel] that under the [sienne]”.
He will remain chairman of the board of directors, while Greg Abel, 62, his designated heir, will take operational orders at the end of the year.