Berkshire Hathaway has clearly lagged a recent rebound in U.S. stocks, recording its biggest relative underperformance so far this year. While the broader market recovers quickly, Berkshire has failed to ride the rally and investor attention appears to be shifting to the succession structure.

Cryptopolitan reported on April 19 that the S&P 500 index topped 7,100 for the first time on expectations of easing tensions between the United States and Iran. Berkshire Hathaway's A and B shares have both fallen by less than 1 percent so far this month. That contrasts with the S&P 500's roughly 9 percent rebound from its year low in late March, seen as one of the fastest recoveries in 36 years.

The gap is more pronounced when compared with the speed of the market rebound. B shares, which had been 1.8 percentage points ahead of the index until just a day earlier, were instead 9.7 percentage points behind as of April 18. That is the largest gap so far this year. The shares have also been weak, turning lower after hitting a record high in May last year. The stock is now more than 12 percent below that level. Even versus the August low last year, gains are limited to 3 percent, highlighting the divergence from the market rebound.

An analysis says the weakness in the shares accelerated after Warren Buffett's retirement announcement. Buffett formalised plans in May last year to retire at year-end, and the market has naturally focused on the succession structure since then.

Incoming leader Greg Abel is already signalling change. He is increasing his involvement in management and reshaping the lineup of key executives, while resuming share buybacks that had been halted. He is also pushing overseas expansion, including investment in Japan's insurance business, as he seeks to diversify the portfolio.

Operating methods are also changing. Abel is becoming more deeply involved in day-to-day management and is tightening oversight of affiliates and investment assets, strengthening performance-focused operations. Internally, there is speculation that swift action could be taken even against senior executives if results fall short. He said, "There are differences in style and approach between Warren and Charlie Munger, and me," while stressing, "The company's core values will continue to be maintained."

Changes are also continuing in investment strategy. Abel cited Apple, American Express, Coca-Cola and Moody's as core holdings, and he has closed some positions previously handled by Todd Combs. Combs has recently moved to JPMorgan Chase, and there are no plans to appoint a successor.

Berkshire's succession structure has been prepared for years. The direction was set after Munger disclosed the succession plan in 2021, but the exact timing was uncertain. The transition became real after Munger died in 2023 and Buffett pinned down his retirement timing.

The annual shareholders meeting about 2 weeks away is expected to be an important turning point to gauge these changes. The market is watching whether Berkshire can secure new growth drivers while maintaining its existing investment philosophy after Buffett.