Warren Buffett's wealth has dwindled following his declaration of stepping down.
Warren Buffett, the legendary CEO of Berkshire Hathaway, announced his retirement earlier this year, and since then, his personal fortune has taken a significant hit.
Despite Berkshire Hathaway's stock rising by 20 percent before the retirement announcement, it has since fallen by 13 percent [2][4]. This decline has been a result of investor uncertainty and loss of confidence in Berkshire's future without Buffett's leadership.
One key reason for this decrease is the loss of the "Buffett premium." Historically, Berkshire's stock traded at higher valuations due to Buffett’s legendary investment skill and leadership. However, since his retirement announcement, this premium has eroded as investors doubt whether his successor can match Buffett’s track record [3][4][5].
Another factor is the post-retirement stock price reaction. Before the retirement news in early May 2025, Berkshire’s shares gained around 20 percent year-to-date. Following Buffett’s surprise announcement, the stock plunged roughly 13 percent due to concerns over leadership transition and second-quarter earnings that disappointed the market [2][3][4].
In addition, the market shift away from Berkshire's profile has also played a role. Investors have been turning to riskier technology stocks, reducing demand for Berkshire as a haven asset amid economic fears [2].
Moreover, Buffett's charitable donations have contributed to the decrease in his personal net worth. He made a sizable $6 billion donation of Berkshire stock around the same time, which also contributed to a decrease in his personal net worth [2].
Since the retirement announcement, Buffett's net worth has decreased by approximately $28 billion. At the time of writing, his net worth stands at $141 billion [6]. This donation has contributed to a decrease of almost $1 billion in Buffett's net worth since January, despite the Berkshire stock rising by three percent in the same period.
At the end of June, Buffett donated Berkshire shares worth around $6 billion to the Gates Foundation and four family foundations [7].
While Buffett’s personal wealth has decreased, the company's fundamentals remain solid. However, the market's valuation now more closely mirrors typical conglomerate multiples without Buffett's name attached.
What about the impact on personal-finance and investing, given Warren Buffett's retirement and the subsequent decline in Berkshire Hathaway's stock? Some investors might question the future of finance without the "Buffett premium" and the doubtful successor's ability to match Buffett's track record in investing and business.
