Berkshire Hathaway stock is dropping as traders react to Warren Buffett’s plan to step down

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Berkshire Hathaway stock is dropping as traders react to Warren Buffett’s plan to step down

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Berkshire Hathaway stock fell as much as 7% after Warren Buffett announced his retirement as CEO.

Buffett’s retirement announcement came during Berkshire Hathaway’s shareholder meeting.

Greg Abel will succeed Buffett as CEO, while Buffett will remain Chairman of the board.

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stock dropped as much as 7% on Monday following the news over the weekend that

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as CEO of the conglomerate at the end of the year.

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The billionaire investor

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over the weekend, and shareholders are now wondering what the company will look like without Buffett at the helm.

Berkshire Hathaway’s Class B shares tumbled to a low of $502.80 Monday morning.

Other issues that could be weighing down the stock on Monday include:

Berkshire Hathaway’s first-quarter earnings results missed analyst estimates

It was an overall down day for the market as investors reacted to more uncertain trade policies from the Trump administration

Investors may be taking a breather after Berkshire Hathaway stock enjoyed a stellar rally for the past two-and-a-half years

But Cathy Siefert, director at CFRA Research, thinks the real culprit is

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“I think the ******* issue is the Buffett premium being extracted from the stock,” Siefert told Business Insider on Monday. “That’s really what’s driving things today.”

Siefert said it makes sense for investors to sell Berkshire Hathaway stock, given its strong performance over the past year and year-to-date, with the stock up 13% compared to a 4% decline in the S&P 500.

“You have a cohort of investors sitting on significant gains heading into a ******* of uncertainty both at Berkshire and in the broader economy,” Siefert said.

Buffett is set to remain Chairman of the Board of Directors, while longtime Berkshire Hathaway Energy

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will take Buffett’s spot as CEO.

“I think there’s no replacing Buffett,” Siefert said of investors’ views of the change in leadership.

But that doesn’t mean Berkshire Hathaway shares can’t continue to climb.

“I think longer term, Berkshire is in good hands, I just think they’re in a ******* of transition, and you’re losing one of the most esteemed investors one could argue of all time,” Siefert said.

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