Buffett's Twilight: Berkshire's Future Hangs in the Balance
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Buffett's Twilight: Berkshire's Future Hangs in the Balance
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Berkshire Hathaway has been at the center of a whirlwind since Warren Buffett announced his upcoming retirement after more than six decades at the helm, as reported by Morningstar. The stock swiftly plunged over 12 percent since May, sparking fresh questions about whether the so-called Buffett premium—the extra value investors placed on Berkshire thanks to its legendary leader—has faded for good. Analyst chatter hints the sell-off may have less to do with Buffett himself and more with the stock’s valuation finally recalibrating. All eyes are now on Greg Abel, who will step into Buffett's shoes at the end of the year. Industry watchers say he faces a microscope Buffett never had and will be expected to immediately stamp his authority and tackle lingering issues.
Second-quarter earnings released Saturday showed a classic “Berkshire moment”—the insurance business performing well while other divisions struggled, most notably with a stinging $3.8 billion writedown on the Kraft Heinz stake. AOL and The Motley Fool both note that this chronically underperforming food giant is widely seen as one of Buffett’s biggest portfolio mistakes and that the company could now be maneuvering to exit the position, especially after Berkshire’s board members quietly resigned from Kraft Heinz earlier this year. Strategic alternatives like a spin-off are apparently being considered, but no official announcement yet.
On the acquisition front, Berkshire remains cautious. Fortune, Nasdaq, and others report the company was a net seller of stocks for the eleventh consecutive quarter, raising its mountainous cash pile to a new record of $344 billion. Buffett, cautious as ever, hasn’t bought back any shares since May 2024, signaling he views even Berkshire as too pricey—a move that is unnerving some long-time disciples.
But it’s not all selling. Sirius XM has stepped into the spotlight as Berkshire snapped up over $100 million in shares, nudging its ownership to just over a third of the satellite radio company. 24/7 Wall St and Kingswell on Substack note that this deep value media play sharply contrasts with sales of DaVita and Verisign, as Berkshire continues to rebalance its sprawling portfolio.
Social media, on the other hand, has been quieter than usual, with only scattered mentions and no viral headlines—though an Instagram post from a Berkshire Hathaway Home Services affiliate on AI drew light engagement, far from newsworthy.
The rumor mill online is buzzing about a possible railroad merger that could draw in Berkshire’s BNSF, but as of now, talk of an acquisition war is only speculation; no formal moves have been confirmed.
As Wall Street braces for Berkshire’s next 13F filing, due within days, the rumor machines churn, fans and skeptics speculate about Greg Abel’s next moves, and, for now, the story of Berkshire Hathaway is as much about what it is not doing as what it is.
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