Warren Buffett to release farewell letter Monday as Berkshire Hathaway shows its stability for investors
Berkshire Hathaway shares climbed more than 4% in the past week, outperforming the market as investors awaited a highly anticipated letter from Warren Buffett — his first public message since announcing in May plans to step down as CEO by the end of the year. The letter, set to be released on Monday, will include Buffett’s reflections on philanthropy, the company and other matters ” that shareholders and others may find to be of interest, ” Berkshire said. It’s expected to serve as the 95-year-old investor’s valedictory farewell after more than six decades leading the conglomerate, which began as a struggling New England clothing company. Berkshire Hathaway’s 4.6% rally last week came amid a sharp, technology-led sell-off that dragged major indexes lower, with the Nasdaq Composite tumbling 3% as investors rotated out of high-growth stocks. In contrast, Berkshire’s diversified portfolio of cash-generating businesses — from insurance and railroads to utilities — offered a haven during the market’s latest bout of volatility. BRK.A 5D mountain Berkshire Hathaway Class A shares over last 5 days Investors looking for a safe refuge last week found Berkshire appealing for its defensive Geico insurance business and fortress balance sheet. The conglomerate held a record $382 billion in cash at the end of September. Berkshire’s strength also reflects a robust third quarter, when operating earnings rose 34% year over year, driven by a more than 200% surge in insurance underwriting income to $2.37 billion. Lately, Buffett, who steps down as CEO at the end of the year, has been in a selling mood. Berkshire has been a net seller of stocks for 12 consecutive quarters and investors have recently speculated that Omaha-based Berkshire may have pared its massive Apple stake again in the third quarter. “We continue to believe Berkshire’s shares are attractive in an uncertain macro environment with defensive businesses, a strong cash position and growth improving at GEICO (which should help float),” UBS said in a note earlier this week. Still, Berkshire shares have underperformed the S & P 500 this year as the so-called “Buffett premium” has waned following news of his planned retirement. The stock is up nearly 10% in 2025, compared with a broader market gain of 14.4%.
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