Buffett, the longtime Berkshire CEO, announced Tuesday he has stage one prostate cancer. Berkshire Hathaway Class A and B stock finished down about one and a half percent Tuesday and Wednesday.
Lee Dunham, assistant professor of finance at Creighton University, says the impact on Berkshire stock following Buffett’s announcement could’ve been significant. "The one to two percent down, when the market’s down, is kind of in line with what I expected to happen. I think had it been a worse diagnosis, it would have been a more adverse impact."
Dunham believes the manner in which Buffett handled the announcement will help Berkshire avoid some of the uncertainty that other corporations, such as Apple, have experienced when their leaders are ill.
In his letter to shareholders Tuesday, Buffett said he’ll begin treatment in July. Buffett says his doctors have advised him that his condition isn’t life-threatening.