Berkshire Hathaway Board Member Sells Almost 30% of Company Stock Amid Warren Buffett's Departure

Berkshire Hathaway board member Chris Davis's investment firm, Davis Selected Advisers, sold nearly 30% of its stake in the company during Q2. This comes after Warren Buffett announced he will step down as CEO at the end of 2025. Berkshire Hathaway remains Davis Selected Advisers' third-largest holding by dollar value at around $1 billion. BRK.B stock has fallen nearly 15% since Buffett's announcement.

Omaha, NE – Berkshire Hathaway (NYSE: BRK.A, NYSE: BRK.B), the sprawling conglomerate led by legendary investor Warren Buffett, has faced significant market volatility following recent announcements. The company's stock has experienced notable fluctuations, with the Class A shares dropping nearly 3% and the Class B shares experiencing a slight dip in premarket trading. These changes come amidst a period of transition for the company, including Buffett's upcoming retirement as CEO at the end of 2025 and the significant write-down of its investment in Kraft Heinz (NASDAQ: KHC).

The recent earnings report highlighted a 4% year-over-year decline in operating income, primarily driven by lower insurance underwriting premiums and global trade uncertainties. While segments like BNSF Railway and Berkshire Hathaway Energy showed profit increases, they were not enough to offset the overall dip. The most striking element of the earnings report was the substantial write-down of approximately $3.76 billion (or $5 billion pre-tax) on Berkshire Hathaway's stake in Kraft Heinz. This marks the second such write-down for Kraft Heinz, following a previous one in 2019, and serves as a stark admission from Berkshire Hathaway that its initial investment in the food conglomerate was significantly overvalued. This write-down alone contributed to a sharp 59% decline in Berkshire's overall net income for the quarter, highlighting the profound impact of this single investment on the conglomerate's bottom line [2].

Adding to the market's concern, Berkshire Hathaway's board member Chris Davis's investment firm, Davis Selected Advisers, sold nearly 30% of its stake in the company during Q2. This comes after Warren Buffett announced he will step down as CEO at the end of 2025. Berkshire Hathaway remains Davis Selected Advisers' third-largest holding by dollar value at around $1 billion. The Class B stock has fallen nearly 15% since Buffett's announcement [1].

These developments underscore investor concerns regarding the company's ability to generate robust profits from its core businesses and the ongoing challenges faced by some of its key investments. The market's reaction underscores the potential impact of Buffett's retirement and the need for a smooth transition of leadership. Greg Abel, who is slated to succeed Buffett as CEO at the end of 2025, will face significant challenges in maintaining investor confidence and steering the company through these uncertain times.

References:
[1] https://www.benzinga.com/news/entertainment/25/08/46975442/warren-buffett-buys-stock-of-company-with-500-million-howard-stern-decision-to-make
[2] https://markets.financialcontent.com/wral/article/marketminute-2025-8-5-berkshire-hathaway-stumbles-operating-income-declines-amidst-kraft-heinz-write-down