Berkshire Hathaway’s Descent: A Portfolio Manager’s Musings

In the grand theater of finance, where fortunes rise and fall like the curtain in a tragicomedy, Berkshire Hathaway’s shares have taken a bow, retreating from their 2025 zenith. A curious spectacle, this descent—prompting investors to ponder whether to purchase its stock while it lingers below the $500 mark. Let us dissect this farce with the precision of a seasoned portfolio manager, lest we mistake folly for wisdom.

The Act of Pullbacks

No stock ascends without a stumble, not even the venerable Berkshire Hathaway. A 10% dip from its peak, though alarming to the untrained eye, is but a minor act in the eternal play of markets. Class B shares, now attainable for under $500, offer a more accessible stage for the common investor, while Class A shares remain a spectacle reserved for the wealthy. Yet, one must ask: is this a curtain call or merely an intermission?

The causes of this retreat are manifold—a sprawling cash reserve, waning outperformance, and the departure of Warren Buffett, the famed “Oracle of Omaha.” The latter, a pivotal act in this drama, has left many spectators clutching their pearls. Yet, as the curtain falls on one act, another begins.

The New Protagonist

For decades, Berkshire Hathaway has been synonymous with Buffett, its very essence entwined with his. To invest in the company was to entrust one’s capital to a man whose name is whispered with reverence. But now, a new actor takes the stage: Greg Abel, Buffett’s chosen heir. A curious figure, he is neither the old maestro nor a mere imitator. His approach, though distinct, is forged in the fires of Buffett’s tutelage. Will he uphold the legacy, or will he falter like a novice in a role too grand?

Buffett, though retired from the CEO role, remains a shadowy director, ever watchful. His presence, like a ghost in the machine, ensures that the play does not descend into chaos. Yet, the question lingers: can a successor truly replicate the alchemy of a man whose genius is as rare as a flawless diamond?

The transition, though inevitable, is a tale of two actors. Abel, with his own vision, must navigate the labyrinth of Berkshire’s empire. Yet, the foundation laid by Buffett remains—a sturdy stage upon which new acts may be performed. The audience, ever fickle, watches with bated breath.

In this grand performance, the fear of a new CEO is but a minor act. The true test lies in the enduring strength of the company’s ethos. After all, a stock is but a script—its value determined by the actors’ commitment to the role.

The Final Act: A Buy or Not?

For the long-term investor, the pullback may be a gift, a chance to acquire shares at a discount. Yet, one must tread carefully. Berkshire, like a well-managed play, thrives on patience. A bear market, after all, is no friend to the impatient. To chase short-term gains is to miss the essence of the performance.

In conclusion, the descent of Berkshire Hathaway is not a tragedy but a narrative in motion. Whether to buy its shares is a choice as personal as the audience’s reaction to a play. Let the market’s antics amuse, but let reason guide the investment.

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2025-07-25 15:47

The Act of Pullbacks

The New Protagonist

The Final Act: A Buy or Not?

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