Berkshire Hathaway Lagging Behind as Global Finance Shifts

Warren Buffett’s retirement from Berkshire Hathaway, announced two weeks ago, marks the start of a new era for the company. However, the focus is on why it’s struggling to adapt in a rapidly changing global financial landscape. 20% annual returns for six decades are simply not sustainable anymore. The world is moving towards real-time trading and tech-driven decisions, while Berkshire struggles with a legacy strategy rooted in float and leverage. 2025 marks the end of Warren’s reign as CEO, replaced by Greg Abel. The article delves into the key reasons behind this slowdown: the evolution of finance beyond traditional stock picks and the regulatory challenges around Berkshire’s unique business model.