Berkshire shares drop 5%, market value down $5.9 billion after Buffett steps down as CEO
Berkshire shares plunge 5%, wiping $5.9 billion off market value after Buffett steps down as CEO, passes baton to Greg Abel, though he will remain chairman of Berkshire Hathaway
May 6, 2568 Legendary investor Warren Buffett will remain chairman of Berkshire Hathaway. After Greg Abel, Vice President, will take over as CEO. The Berkshire Group made the announcement on Monday (May 5).
The announcement comes two days after Buffett, 2, announced at an annual shareholders' meeting in Omaha, Nebraska, that he would step down as CEO, ending his six-decade run at Berkshire Hathaway.
However, the news sent Berkshire's stock down about 5%, dragging its market value down $5.9 billion to $1.11 trillion.
Although Abel's ascension had been anticipated for four years, Buffett's announcement still came as a surprise to many.
Berkshire's board of directors officially approved Abel's appointment as CEO at its meeting on Sunday (May 4), effective January 1, 2569.
At the meeting, Buffett also firmly stated that he would not sell a single share of his Berkshire stock, which is his main asset.
Buffett said He has no intention of selling a single share of Berkshire Hathaway, which was met with a two-minute standing ovation from attendees.
Buffett Added that The decision to keep all of his shares was an economic one, as he believed Berkshire's future would be better under Greg's leadership than under his.
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