May Mathi, when Buffett announced his intention to assign the rein of the Investment Group in Omaha, Berkshire’s Class B stocks have been more than a tenth of their value. This reduction only year-to-date benefits%. The% is reached less than the 7% advance of the S&P 500 in the same period.
In the last seven weeks, the downturn has expanded in the summer months with stock l -l -ging ging damage. If it ends in a negative region, it will mark the continuous monthly reduction of Berkshire, which is the longest pull since June 2022.
Remembering the future after market
In the absence of a long -running leader of selling, the market’s anxiety highlights the future of the company. Buffett, who transformed Berkshire into a consolidation of a struggling cloth Pay FIRM in six decades, is a singular presence in a global investment. In his departure raises questions about the fact that the next pay -general leaders of the group can maintain the edge of the same operation.
Nevertheless, Buffett has long sought to be angry with expectations about Berkshire’s future returns.
He wrote in his annual letter of 2023, “With the current mix of our businesses, Berkshire should do a little better than the average American Corporation and, more importantly, work with the physical low risk of permanent loss of capital.” Next to “a little better ‘, however, is a willing thinking.”
He also accepted the difficulties of deploying Berkshire’s huge cash pile, noting that it made it difficult to find investments capable of moving the company’s scale needle.
The legacy remains intact
Despite the latest weakness, Buffet’s long -term record matches in Berkshire. After gaining control in the 1960s, it has given the accumulated return of 5,502,284%, which is more than twice the average annual benefit of the S&P 500 during that period.
Nevertheless, as the consolidated future without buffet on the helm is adjusted, the underperformance of the stock suggests that markets are starting to regain their expectations, not just for earnings, but for the abstract value of the Buffet brand.
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