Rogue Analyst SLAPS "Underperform" on Warren Buffett's Empire (The Beginning of the End?)

“And I took that personally” - Michael Jordan Warren Buffet, probably…

Keefe, Bruyette & Woods analyst Meyer Shields… a man clearly craving chaos… decided yesterday that it would be a fine idea to slap an “underperform” rating on Warren Buffett’s Berkshire Hathaway. Which is about the same as Meyer walking into Omaha, slapping the Cherry Coke out of Warren’s hand, and asking if he wants to fight.

(Source: Giphy) 

The reason? Apparently, Meyer thinks “many things are moving in the wrong direction”. And by wrong direction he means Berkshire’s insurance margins, falling interest rates, and tariffs… a.k.a, the usual piss in your coffee type suspects. But then he said the quiet part out loud: what happens when Warren actually leaves? That’s the part no one wants to touch. Buffett’s retiring as CEO in January, handing the wheel to Greg Abel… the guy everyone pretends to know but couldn’t pick out of a lineup of Omaha accountants. Warren will stay chairman, but the market’s already feeling like Dad’s moving out. 

(Source: New York Post) 

Case in point: Since Buffett announced the management change in May, Berkshire’s lagged the S&P by 28 points… and right now many people are wondering if this will indeed be the new norm. Meaning, the math of mortality doesn’t look good as Shields cut his target price on Berkshire Class A shares to $700,000 from $740,000, citing a lineup of macro clusterf*cks: 

• Geico’s accident payouts are rising as it slashes premiums to win back market share from Progressive.
   
• BNSF Railway stuck moving freight through a tariff-riddled western corridor.
   
• A $344 billion cash pile that suddenly earns less now that rates are sliding again.
   
• And the slow death of clean-energy tax credits under Trump’s One Big Beautiful Bill Act, which could kneecap Berkshire Energy.

In other words: less yield, more risk, and a whole lot less G.O.A.T. energy. However, the real fear isn’t macro… it’s metaphysical. Buffett’s presence is Berkshire’s moat. The man’s name is worth fifty basis points on the balance sheet. Take him out of the equation, and you’re left with a corporate hydra run by insurance nerds and freight accountants. So naturally, the downgrade stung. Still, Meyer dropped it with full confidence, and honestly, respect. It takes a certain breed of psycho to stand on a CNBC panel and say “Warren Buffett? Mid.”

(Source: Giphy) 

Additionally, this all comes right before Berkshire reports Q3 earnings around November 2nd. If the insurance numbers wobble or the cash pile looks too lazy, the market’s going to start whispering the same thing Shields just yelled. Which means… which means… while the Oracle is still alive, the aura is cracking. The man built a financial empire out of Dairy Queen and discipline…and for the first time in six decades, the Street may just start betting against him. Bold strategy Cotton, let’s see if it pays off for ‘em. Until next time, friends…

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.