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Berkshire Hathaway CEO Transition
Warren Buffett, the longstanding CEO of Berkshire Hathaway, announced during the company’s annual shareholder meeting in May that he will retire at the end of 2025, transferring leadership to Greg Abel. This transition is set to occur in approximately 100 days, on September 23, 2023.
Buffett’s tenure has seen Berkshire achieve nearly 6,000,000% cumulative returns on Class A shares compared to approximately 44,000% for the S&P 500. Key changes are anticipated under Abel’s direction, including heightened trading activity from investment lieutenants Todd Combs and Ted Weschler, a potential focus on healthcare stocks, and the possibility of divesting from one or more of Berkshire’s core holdings.
As of September 16, the forward P/E ratio of S&P 500 healthcare stocks stands at 16.4, significantly lower than the overall S&P 500’s P/E of 22.7, indicating an investment opportunity in this sector post-Buffett.
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