Berkshire Hathaway shares rose over 4% last week, beating the broader market as investors looked forward to the much-awaited letter from Warren Buffett. It will be his first public note since he announced in May that he would step down as CEO by the end of this year. The letter, set to be released on Monday, will share Buffett’s thoughts on charity work, the company, and other topics of interest, a CNBC report said.
Berkshire Hathaway gains as tech stocks fall
Berkshire Hathaway shares jumped more than 4.6% last week even as major stock indexes dropped sharply due to a sell-off in technology shares. The Nasdaq Composite fell 3% as investors pulled money out of high-growth companies. In contrast, Berkshire’s wide mix of steady, cash-generating businesses, including insurance, railways, and utilities, gave investors a safe place to turn during the market’s recent turbulence.
Warren Buffett’s last annual letter
At 95, this message is expected to be his final farewell after more than sixty years of leading the firm, which started out as a small textile business in New England.
Warren Buffett’s exit is being seen as the close of a historic chapter, not just for Berkshire Hathaway but for American business as a whole. This has sparked intense curiosity about what he might reveal or reflect on in his final letter to shareholders.
The excitement grew so much that Buffett released a statement on November 6, explaining that his upcoming letter would focus on philanthropy, Berkshire, and other topics of interest to investors. Titled “It’s Not Me,” the statement also cautioned people about fake videos of him spreading on YouTube and other online platforms.
Will there be a dividend announcement?
The biggest buzz online is about whether Warren Buffett will finally announce a dividend for Berkshire Hathaway shareholders. The company has never paid one, even though it now holds a record $381.6 billion in cash. Some market watchers believe Buffett might announce a one-time special payout as a farewell gesture to investors.
It’s still unclear if he will do so. Buffett has long opposed paying dividends, saying he prefers to reinvest profits back into the company. However, this policy could change once Greg Abel becomes CEO. Abel is expected to begin writing the annual shareholder letters in 2026.
In his earlier letters, Buffett has often shared thoughts on the economy, family, giving back to society, investing, and his faith in America’s opportunities. He will continue as chairman of Berkshire Hathaway’s board even after stepping down as CEO.
Berkshire Hathaway seen as safe bet amid market uncertainty
Berkshire Hathaway’s Class A shares gained last week as investors turned to the company’s solid insurance arm, Geico, and its strong financial position for stability. The conglomerate ended September with a record $382 billion in cash. Its strength also showed in the third quarter, when operating profits jumped 34% from a year earlier, helped by a sharp rise in insurance underwriting income to $2.37 billion, reported Bloomberg.
Buffett has continued trimming Berkshire’s stock portfolio. The company has been a net seller of shares for 12 straight quarters, and investors believe it may have further reduced its large Apple stake.
According to Bloomberg, analysts say that Berkshire remains attractive in today’s uncertain economy thanks to its steady businesses, healthy cash reserves, and Geico’s improving performance. However, the stock has lagged behind the S&P 500 this year, rising nearly 10% compared with the broader market’s 14.4% gain, as investor enthusiasm has eased following news of Buffett’s retirement.
