Warren Buffett, the chairman of Berkshire Hathaway, announced his retirement during the shareholders' meeting last Saturday, handing over the CEO position to Greg Abel. Berkshire officially announced on Monday that the board has approved Abel to take over as CEO next year, while Buffett will continue as chairman. Following this news, Berkshire's B shares dropped 2.6% in pre-market trading, closing at $526 per share.

Buffett's retirement sent shockwaves through the investment community. He has led Berkshire for over 60 years, with the company now valued at $1.16 trillion and facing market challenges, including the ongoing trade war from the Trump administration. Abel, who previously managed Berkshire's non-insurance businesses, now faces the challenge of living up to Buffett’s legendary investment prowess.

Analyst Meyer Shields commented that while Abel's capabilities are significant, the unexpected timing of this announcement may pressure stock prices on Monday. Investors are uncertain about the future of Berkshire's 189 subsidiaries and $348 billion in cash after Buffett's departure.