Berkshire Hathaway shares fell 7% after Warren Buffett announced his retirement as CEO.
Buffett's retirement announcement was made at Berkshire Hathaway's shareholder meeting.
Greg Abel will replace Buffett as CEO, who will continue to serve as chairman of the board.
Berkshire Hathaway shares fell 7% on Monday after Warren Buffett took over as CEO of the conglomerate at the end of the year.
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Billionaire investors shocked global investment over the weekend, and shareholders now wondered what the company would be like without Buffett’s helm.
Berkshire Hathaway's B-class sharing dropped to $502.80 on Monday morning.
Other issues that could make the stock lower on Monday include:
Berkshire Hathaway's first-quarter earnings result misses analyst estimates
For the market, this is the overall decline in the market as investors react to the Trump administration's uncertain trade policy
Investors may be gasping for Berkshire Hathaway stock over the past two and a half years
But CFRA Research director Cathy Siefert believes the real culprit is Buffett's retirement decision.
"I think the bigger problem is the Buffett premiums taken from stocks," Siefert told Business Insider on Monday. "That's really what drives things today."
Siefert said it made sense for investors to sell Berkshire Hathaway shares, with shares growing 13% while the S&P 500 fell 4%.
"You have a group of investors sitting in a period of uncertainty in Berkshire and the broader economy," Siefert said.
Buffett will continue to serve as chairman of the board, while longtime Berkshire Hathaway Energy CEO Greg Abel will serve as Buffett as CEO.
"I don't think there is a replacement for Buffett," Sifter said of investors' views on leadership change.
But that doesn't mean Berkshire Hathaway's stock can't continue to climb.
"I think in the long run, Berkshire is in good hands, I just think they are in a transitional period and you are losing one of the most respected investors of all time," Siefert said.
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