Since Warren Buffett announced his plan to step down as CEO of Berkshire Hathaway on May 2, 2025, the company’s Class A and Class B shares have declined by approximately 14%. During the same period, the S&P 500 index, including dividends, has risen by about 11%, resulting in Berkshire Hathaway trailing the index by roughly 25 percentage points, marking its steepest quarterly underperformance against the S&P 500 since 2020. Berkshire Hathaway's cash reserves have reached a record high of $347.7 billion, representing 29.9% of its total assets, the largest cash share in the company's history and significantly above levels seen prior to the 2008 Financial Crisis. Additionally, a firm associated with a Berkshire Hathaway director has sold nearly 30% of its stake in the company. Buffett has also made a $5 billion investment in an undisclosed company, with the identity expected to be revealed soon. The stock currently trades at about 23 times forward earnings amid challenges including tariffs affecting its businesses. These developments come as the investment community anticipates the transition of leadership and the future performance of Berkshire Hathaway.