Berkshire shares have recovered the losses that followed Warren Buffett’s May 2025 announcement that he would step down as chief executive. Both share classes reached record closing highs on October 22, 2026, before slipping almost 1% the following day, leaving them modestly above their pre-announcement peaks.
Key Takeaways
- Both share classes regained their pre-succession-announcement highs nearly 18 months later.
- Class B shares rose almost 9% in October through October 23, outperforming the S&P 500.
- Berkshire’s recovery coincided with weakness in major technology stocks, but its businesses and investments retain AI exposure.
Table of Contents
- Berkshire shares complete a long recovery
- October gains outpace technology benchmarks
- Cash reserves and continuing AI exposure
- Conclusion
Berkshire shares complete a long recovery
The recovery reverses a decline that began after Buffett’s surprise succession announcement at the May 3, 2025, annual meeting. He said he would leave the CEO role at the end of that year, with Greg Abel taking over.
On the next trading day, Class A shares fell 4.9% and Class B shares dropped 5.1%. Berkshire also disclosed a 14% decline in first-quarter operating earnings that weekend, so the selloff cannot be attributed solely to the leadership transition.
By their August 2025 closing lows, Class A shares had fallen 14.3% from their pre-announcement record and Class B shares were down almost 15%. Both subsequently rallied about 18%, first surpassing their old closing records on October 20, 2026, and extending those highs two days later.
| Item | Details |
|---|---|
| May 2, 2025 closing records | Class A: $809,350; Class B: $539.80. |
| October 22, 2026 closing records | Class A: $820,500; Class B: $546.97. |
| October 23, 2026 closing prices | Class A: $813,595; Class B: $542.19. |
October gains outpace technology benchmarks
Class B shares gained almost 9% from the start of October through October 23. Over the same period, the S&P 500 slipped 0.4% and the equal-weight NYSE Fang+ index, which tracks 10 large technology-related stocks, fell almost 4.8%.
Most of Berkshire’s net point gain since its August 2025 low came during October 2026. The advance narrowed its year-to-date performance shortfall against the S&P 500 to less than four percentage points.
That divergence coincided with investors moving away from technology and AI stocks amid concerns about returns on heavy computing-infrastructure spending. The timing provides market context, rather than proof of a single cause for Berkshire’s gains.
Cash reserves and continuing AI exposure
Berkshire held $365.5 billion in cash as of June 30, 2026, and repurchased $4.5 billion of its shares during the second quarter. Those figures describe its midyear financial position, not its cash balance at the time of October’s rally.
Its investment disclosures also have a reporting lag. Berkshire’s June 2026 quarterly holdings filing was submitted to the SEC on August 14 and covers positions at June 30; that filing period should not be confused with the October market values of those investments.
Berkshire is not detached from AI spending. Abel has described supplying electricity to AI data centers as a significant opportunity for Berkshire Hathaway Energy, provided other customers do not face higher rates. Berkshire also held an Alphabet position valued at about $34 billion in the October snapshot.
Conclusion
Berkshire shares ended October 23 just above the records set before Buffett’s succession announcement. The immediate market test is whether they hold that recovered ground after October’s sharp advance.
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Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
