Buffett to Step Down at Year-End, Berkshire Seen Trimming Apple Stake

Warren Buffett will retire as chief executive of Berkshire Hathaway at the end of 2025, handing the reins to Greg Abel after more than six decades in charge. The shift comes as Berkshire continues to pare back its outsized Apple (Zorrox: APPLE) holding, with analysts expecting further cuts once Buffett formally exits.

What’s Confirmed

Buffett, 94, told shareholders in May that he would relinquish the CEO role by year-end but remain chairman in an advisory capacity. Abel, long designated as successor, will take over full operational control. The succession plan has been in place since 2021, but the formal timetable has sharpened investor focus on how Berkshire’s portfolio may evolve without Buffett at the helm.

Regulatory filings show that Berkshire has already trimmed its Apple stake in recent quarters, reducing its weight in the equity book even though it remains the single largest holding.

Why Apple May Face More Sales

Buffett built his reputation on concentrated, long-term bets. Abel and investment deputies Todd Combs and Ted Weschler are expected to take a more diversified approach. Apple’s valuation has stretched in recent years, diverging from Berkshire’s traditional value lens, and that may invite further reductions. Prior sales have already signaled that rebalancing is under way.

Market Response

Buffett’s retirement announcement drew mixed market reaction. Many investors trust Abel to maintain Berkshire’s culture, but the transition has underscored leadership risk. Berkshire shares have lagged the S&P 500 since the news, with some analysts pointing to uncertainty around investment discipline under the new team.

Apple’s paring has fueled debate. Some investors see it as prudent portfolio management, others as the end of Buffett’s willingness to carry concentrated tech exposure. Most expect further trimming to be gradual, not sudden.

Risks if the Shift Speeds Up

If Berkshire accelerates sales of Apple stock, potential tax implications and market volatility could follow, even with Berkshire’s structural advantages. Given Apple’s role in both Berkshire’s portfolio and in global benchmarks, significant disposals could ripple across indices and ETFs.

Another risk lies in perception. If Abel moves too quickly, investors may see Berkshire as missing upside if Apple continues to deliver on growth in areas like AI and hardware-software integration. Market confidence will hinge on how Abel manages the balance between continuity and change.

Tips for Traders

• Apple (Zorrox: APPLE) trimming may continue; watch Berkshire’s 13F filings for signals.

• Berkshire’s valuation multiples could re-rate as investors reassess under new leadership.

• Track where capital freed from Apple is redeployed; shifts may open opportunities in other sectors.

• Hedging Apple-heavy portfolios may be prudent until Berkshire’s new strategy becomes clearer.

• Leadership headlines alone can drive volatility in Berkshire’s shares.