Pay Attention, Berkshire Hathaway Investors: Warren Buffett To Drop Likely Farewell Letter Today

• Buffett has often been candid in his shareholder addresses, admitting his mistakes and sharing his insights into investing.
• The Omaha. Nebraska-based company clarified last week that Buffett’s statement will include comments “regarding philanthropy, Berkshire, and other matters that Berkshire shareholders and others may find to be of interest.”
• Berkshire shares have grown at a compound annual rate of 19.9% since Buffett took charge, nearly double the 10.4% recorded by the S&P 500.

Berkshire Hathaway shareholders will be bracing themselves for a likely final message by CEO Warren Buffett before he leaves his position after six decades. Monday’s letter to shareholders by Buffett will reportedly be his first official message since his surprise announcement of stepping down from the position of the chief executive of the $1.08 trillion conglomerate.

Berkshire stock gained nearly 5% last week despite a broader market decline. Earlier this month, the firm stated that its insurance underwriting earnings more than tripled during the third quarter, as it retained more premiums amid the absence of any major catastrophes. Berkshire, due to its wide range of holdings spanning from dairies to energy, is considered an economic bellwether in the U.S.

What Could Be Expected?

Anticipation is building on social media platforms about what the Oracle of Omaha might say in his likely final address to shareholders, after turning Berkshire from a struggling textile firm into an industrial powerhouse since he took over the reins in 1965.

Due to his stature as the most legendary investor on Wall Street, the internet often gets filled with fake videos or quotes from Buffett, which again emerged last week. The Omaha. Nebraska-based company clarified that Buffett’s statement will include comments “regarding philanthropy, Berkshire, and other matters that Berkshire shareholders and others may find to be of interest.”

Berkshire, whose holdings include Apple and Chevron, was a net seller of stocks for the 12th consecutive quarter between July and September, while it did not repurchase any shares for the fifth straight quarter. Its cash holdings, however, swelled to nearly $382 billion, a record. The company also famously doesn’t pay dividends.

Buffett has often been candid in his shareholder addresses, admitting his mistakes and sharing his insights into investing. In his 2008 shareholder letter, the billionaire acknowledged making "dumb things," including buying ConocoPhillips stock at a high price, and described the financial crisis as a "shambles" that would last through 2009.

What Is Retail Thinking?

Retail sentiment on Stocktwits about Berkshire was in the ‘neutral’ territory at the time of writing. "Bet we start drilling tomorrow while everything moons. Unless big daddy B has some golden nuggets in his talk," one trader said.

How Has Berkshire Stock Performed Under Buffett?

Berkshire shares have jumped by over 5,502,284% since Buffett took charge in 1965 by the end of 2024, according to its last annual report. By comparison, the broad S&P 500 gained 39,054% over that period, including dividends. The jump implied that Berkshire shares have grown at a compound annual rate of 19.9%, nearly double the 10.4% recorded by the S&P 500.

So far this year, Berkshire stock has gained 9.5%, underperforming the S&P 500 index's 14.7% gain and the Nasdaq 100's 19.5% rise.

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