Despite Their Hero Buffett's Exit Plan, Small Investors Rushed Into Berkshire Shares During a Dip

Retail investors funneled over $24 million into Berkshire Hathaway’s Class B shares on Monday, signaling that the company is more than just a Warren Buffett cult stock — it’s also a vote of confidence in the company’s incoming CEO, Greg Abel.

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According to data from Vanda Research, everyday traders contributed about $24.4 million in net inflows to Berkshire’s B shares during Monday’s trading session. This marked the highest level of net inflows for the stock since 2016, even though the shares fell more than 5% that day — making it the stock’s third-worst session in the past five years.

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The sharp drop followed Buffett’s surprising weekend announcement that he plans to step down as Berkshire’s CEO at the end of the year, handing leadership over to Abel. The news arrived as tens of thousands of shareholders gathered in Omaha for the company’s annual meeting, an event that has become something of a pilgrimage during Buffett’s six decades at the helm. Shareholders hold the “Oracle of Omaha” in near-mythic regard, with many wearing Buffett-themed clothing and lining up to buy plush toys of his likeness at the gathering.

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“I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett told shareholders during a Q&A session on Saturday.

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Buffett is widely regarded as one of the most influential figures in popularizing disciplined, value-oriented investing for everyday people. Given that, many market watchers might have expected mom-and-pop investors to feel uneasy at the prospect of Buffett stepping away from the top leadership role. But Monday’s trading told a different story.

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The inflows seen on Monday were more than triple the size of those recorded the previous Friday, highlighting the surge of interest in the stock following the leadership news. In fact, the inflows marked the fourth-largest one-day net haul for Berkshire’s B shares since Vanda Research began tracking the data in 2014.

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Here’s a look at Berkshire’s largest one-day net flows since 2014:

• June 24, 2016: $41,543,725
• August 24, 2015: $26,606,101
• December 9, 2014: $25,732,006
• May 5, 2025: $24,356,196
• January 4, 2016: $22,001,366

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Now, investors are turning their attention to what Berkshire might look like under Abel’s leadership. Unlike Buffett, Abel has not shown a particular talent for picking stocks — a skill that made Buffett a legend among everyday investors. Still, some of those concerns may be softened by Buffett’s reassurance that he intends to stick around. The company’s board has already voted to keep him on as chairman.

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Buffett, who remains Berkshire’s largest shareholder with more than $160 billion worth of stock, emphasized that he has no plans to sell even a single share of the company he transformed from a struggling textile firm into a $1.2 trillion powerhouse.

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He also heaped praise on Abel during the annual meeting, which likely helped calm any nerves among shareholders about the company’s direction after his departure.

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“The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine,” the 94-year-old Buffett stated.

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Buffett’s eventual departure has loomed large in the minds of shareholders, particularly following the death of his longtime business partner and friend, Charlie Munger, in 2023. In a February shareholder letter, Buffett shared that he had begun using a cane and hinted that it wouldn’t be long before Abel would take over the writing of Berkshire’s well-read annual memo.

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Despite Monday’s market downturn, Berkshire shares are still up over 13% so far in 2025. That’s a sharp contrast to the S&P 500, which has fallen more than 4% this year. Over the past six decades, Berkshire’s performance under Buffett has consistently outpaced the S&P 500, cementing the company’s reputation as a long-term winner.

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Retail investors, who helped push Berkshire’s stock to a record high the Friday before the annual meeting, may also see the company as a safe haven if the economy turns rough in the coming months. Berkshire currently holds over $330 billion in cash — enough to buy all but 23 companies in the S&P 500 outright.

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And perhaps small investors are also betting that Buffett has one last big move in him before he steps back. Known for making bold purchases when others are fearful, Buffett has built much of his legendary status on his ability to strike bargain deals during times of market turmoil.

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As the leadership transition approaches, investors will be watching closely to see how Abel leads the firm and whether Buffett’s enduring influence continues to shape Berkshire’s future. For now, at least, the retail crowd appears confident that the company’s best days may still lie ahead.

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