Warren Buffett's wealth has diminished since his announcement of stepping down.
Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has seen a significant drop in his net worth since announcing his retirement earlier this year. According to recent reports, Buffett's fortune has decreased by around $28 billion, dropping him from fifth to tenth place in the "Bloomberg Billionaires Index."
The main reason for this decline is the drop in the value of Berkshire Hathaway's stocks. Since Buffett's retirement announcement, the company's shares have fallen by approximately 13 percent. Before the announcement, Berkshire's stock had risen by 20 percent this year.
The company's financial performance in Q2 2025 also contributed to the drop in Berkshire Hathaway's stock price. Berkshire reported a 59 percent decline in quarterly net income to $12.37 billion, compared to the same period last year. This was largely due to a $3.76 billion write-down on its Kraft Heinz stake and the adverse effects of U.S. tariff policies on its consumer goods businesses, which saw a 5.1 percent revenue decline.
Investors have been turning to riskier technology stocks following Buffett's announcement, contributing to the decline in Berkshire Hathaway's stock.
Other tech leaders have also seen significant gains this year. Nvidia CEO Jensen Huang has seen a gain of $42 billion, while Meta CEO Mark Zuckerberg has gained $64 billion. However, not all tech leaders have been immune to market fluctuations. Elon Musk has lost $68 billion due to declines in Tesla stocks, while Bernard Arnault has lost $25 billion due to declines in LVMH stocks.
Interestingly, none of the other 16 people on the "Bloomber Billionaires Index" have suffered losses this year, as their respective companies have seen an increase in value.
One factor that may have contributed to Buffett's charitable donation of around $6 billion to the Gates Foundation and four family foundations is the decline in his net worth. Before the donation, Buffett was worth approximately $169 billion.
Buffett's retirement as CEO of Berkshire Hathaway marks the end of an era for the company. He first invested in the textile company in 1965 and transformed it into one of the most successful conglomerates in the world. Despite the recent challenges, Berkshire Hathaway's stock has risen by three percent in the same period.
- The decline in Warren Buffett's net worth, which has dropped him from fifth to tenth place in the "Bloomberg Billionaires Index," appears to be primarily due to the drop in the value of Berkshire Hathaway's stocks, of which he is the CEO, as well as the company's financial performance in Q2 2025.
- As Buffett steps down as CEO of Berkshire Hathaway, personal-finance enthusiasts might find it intriguing that, despite the significant drop in his net worth, he chose to donate around $6 billion to the Gates Foundation and four family foundations, perhaps demonstrating his ongoing commitment to philanthropy.
