Berkshire Hathaway shares recover toward record highs as post-Buffett transition fears ease
More than a year after Berkshire Hathaway shares sank on concerns over Warren Buffett's planned exit as chief executive, the stock is trading close to its record closing levels again. The rebound comes as investors respond to buybacks, fresh investments, strong insurance conditions and higher short-term interest rates under CEO Greg Abel.
Highlights
- Berkshire Hathaway Class A shares closed Friday at $798,000 and Class B at $532.02, both just 1.4% below record highs.
- Shares rebounded after a post-Buffett announcement drop of over 14%, with a recent 10-session rally adding 5% before a Thursday loss.
- Berkshire deployed $4.5 billion in buybacks in Q2, initiated new investments including Alphabet, and retained about $360 billion in cash.
Share recovery gains support from capital moves
As reported by CNBC, Berkshire Hathaway's Class A shares close Friday at $798,000, leaving them 1.4% below their all-time closing high of $809,350, while the Class B shares finish at $532.02, also 1.4% under their peak of $539.80.The advance marks a notable turnaround from the period after Buffett told shareholders at the May 2025 annual meeting that he planned to step down as CEO at the end of that year. In the following three months, both share classes lost more than 14% as investors worried that a so-called Buffett premium was fading.
The recovery has been uneven rather than linear. A loss on Thursday snaps a 10-session winning streak that had added 5% to Berkshire's stock prices, but the shares rebound Friday with gains of more than 1%.
Investors may also be encouraged that Berkshire is deploying part of its large cash position under Abel. The company carries out $4.5 billion of buybacks in the second quarter and adds investments in Alphabet, Taylor Morrison Home, Lennar and Bending Spoons, while still holding roughly $360 billion in cash.
Our earlier report on the Philippine state pension fund SSS focused on how it defended its equity strategy amid scrutiny over recent unrealized losses. SSS emphasized that paper declines do not translate into cash losses unless holdings are sold below cost, while highlighting decades of realized gains and steady dividend income from core positions. The article also outlined how the fund aims to balance volatility with long-term portfolio discipline and income targets.