BUSINESS

Microsoft shares got off to a rough start this year, but investors have warmed to the company’s AI narrative over the last few months.

BofA analysts say they now expect falling sales through May, dashing prior hopes for a “spring inflection.”

In the 2022 annual letter to shareholders, Warren Buffett described Berkshire Hathaway’s original textile business as “on a death march,” calling it the worst investment he ever made. 

That failing New England mill, which Buffett took control of in 1965 at age 34, now anchors a conglomerate valued at $1.09 trillion, Stock Analysis confirmed.

On Sept. 18, 2026, the 96-year-old told shareholders he was stepping down as chairman effective immediately and would become chairman emeritus, with his son Howard replacing him as chairman and Greg Abel continuing as CEO.

“Father Time always wins,” Buffett wrote in a farewell letter to shareholders. “He has, however, been generous with me.”

Berkshire’s board had previously indicated Buffett planned to keep the chairman’s title. The timing caught investors off guard, even though the succession framework has been in place for years, Reuters reported.

How the Berkshire succession plan splits leadership in two

The handoff follows a framework Buffett outlined publicly more than a decade ago. He said he wanted Howard to serve as a non-executive chairman with no operating authority, as reported by ABC News in 2011.

Susan Decker, former Yahoo president and a longtime Berkshire director, will continue as lead independent director, Axios reported.

Abel handles capital allocation, acquisitions, and day-to-day management across segments from Geico’s insurance underwriting to BNSF’s freight rail network. Howard’s mandate is to preserve the principles Buffett embedded in the company’s culture.

Brian Jacobsen, chief economic strategist at Annex Wealth Management, told Al Jazeera that the transition reflected years of deliberate preparation.

Berkshire has had years to prepare for this transition, so this feels more like the completion of a carefully planned succession than a sudden changing of the guard.

Buffett reinforced that confidence in his letter to shareholders, writing that his expectations for Abel had been “sky high” and exceeded. Buffett will remain on the board, continuing to advise on major decisions.

He described Howard’s position as “a policy the shareholders own and hope never to claim against.” The scale of what both men now inherit traces back to one of the most unlikely turnarounds in American business.

From a struggling textile mill to a trillion-dollar Berkshire conglomerate

Buffett took control of Berkshire in 1965, when it was a declining New England textile operation. The decision, he told CNBC in 2010, cost him roughly $200 billion in foregone gains by routing capital through a textile shell instead of a clean insurance vehicle.

He spent 20 years trying to keep the mill alive before closing it in 1985 and redirecting its capital toward insurance, railroads, and consumer brands, the company’s 1985 shareholders’ letter confirmed.

More Berkshire Hathaway:

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Warren Buffett’s successor Greg Abel makes another $10 billion bet 

Warren Buffett’s Berkshire Hathaway lands major housing deal

The pivot came in 1967, when Buffett acquired National Indemnity, an insurer whose cash flow provided him with capital to diversify, the Warren Buffett’s 2014 special letter stated. 

From 1965 through 2025, Berkshire’s stock compounded at 19.7% annually, nearly doubling the S&P 500’s return over the same period, Berkshire’s 2025 Annual report showed.

The conglomerate now employs nearly 400,000 people across businesses that include Dairy Queen, Duracell, and Fruit of the Loom. It generated $44.5 billion in operating earnings last year, the 2025 report confirmed.

Berkshire’s second-quarter results showed that revenue reached $101.81 billion, a 10.1% increase from the prior year, according to the company’s second-quarter Form 10-Q. 

Operating profit climbed 16% to $12.98 billion, as shown in the company’s Aug. 8, 2026, earnings release.

Berkshire Hathaway’s journey from a struggling textile mill to a trillion-dollar conglomerate shows how strategic capital allocation can transform a business.Cheng Xin / Getty Images

Where Berkshire’s stock stands as the post-Buffett era takes shape

Berkshire’s share price barely moved on the announcement as the stock has gained about 1% in 2026, while the S&P 500 has rallied more than 11%, CNBC reported.

The underlying business closed the second quarter with $365.5 billion in cash and short-term Treasury bills, down from a record $397.4 billion three months earlier, as Berkshire deployed capital into buybacks and equity purchases, the company’s Q2 Form 10-Q showed. 

Abel began drawing down that reserve in the second quarter, according to the company’s Form 10-Q, spending about $4.5 billion on buybacks. 

Berkshire also became a net buyer of equities in the period, accumulating nearly $20 billion in net purchases after 14 straight quarters of net selling, CNBC reported.

The company’s price-to-book ratio has slipped from about 1.62 to 1.53 since Buffett first announced his CEO departure, based on London Stock Exchange Group data cited by Reuters. 

That decline reflects investors still pricing Berkshire without the figure most identified with its strategy.

“You had a company led by a famed value investor, and now you don’t,” said Cathy Seifert, a senior vice president and director at CFRA Research, Reuters reported. The remark captures how investors are repricing Berkshire for the leadership change.

The open question Berkshire shareholders still face

Jacobsen’s description of the exit as “graceful” aligns with the early market verdict: no panic selling and no rush for the exits, Al Jazeera reported.

Abel’s second-quarter moves, from sharply accelerating share repurchases that resumed in the first quarter to expanding Berkshire’s position in Alphabet, offer early data on his instincts. Seifert’s assessment points to the variable that will take longer to resolve.

Whether Berkshire can keep performing with one leader running the business and another protecting its culture is something only years of results will show.

Related: Warren Buffett hands son Howard Berkshire’s strangest job

Former “American Idol” contestant Caleb Flynn is currently on trial for the murder of his wife, Ashley Flynn.

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Why we love this deal

After a humid and hot summer, there’s nothing more exciting than feeling that first breeze of fall. Sure, there are days where it gets pretty cold, but autumn is the prime season for cozy sweatsuits, heated blankets, and lots of layers, perfect to keep you cozy as you go apple picking, attend football tailgates, hit the pumpkin patch, or enjoy a wall where you can see the changing leaves in full view. But at home, nothing keeps you comfier than a great pair of slippers. Not only is it smart to have a pair of soft shoes you can slip on as soon as you kick off your outdoor shoes when you step inside, but with something like the Ecetana Slippers, your toes are always warm, and your feet are properly supported even when they aren’t inside a standard shoe.

And the best part? Slippers often are far more affordable than a stylish sneaker or boot, especially when they are on sale. During a Walmart Flash deal this week, the Ecetana Slippers, which are already a great deal at $18, are 39% off and now available for just $11. With six colors to choose from and a wide variety of sizes, it’s the slipper that everyone can find use out of especially now that temperatures have started to drop. 

Ecetana Slippers, $11 (was $18) at Walmart

Courtesy of Walmart

Shop at Walmart

Why do shoppers love it?

Unlike a standard slipper, where you slide your foot in and out the back, this one is developed almost like a shoe. Your entire foot gets covered, almost like you’re wearing a pair of fuzzy socks, and there’s a special hook and loop design that securely wraps the slipper around your foot to keep it nice and secure. This not only keeps the slippers firmly on your feet, but it allows you to customize the fit of them, since you can pull the hook as tight or as loose as you want.

The slippers are made with fleece and terry cloth fabric. The outer layer has a breathable fleece upper which keeps your feet warm without overheating them, and stays nice and flexible, moving with your feet as you walk or recline. Plus, the fuzzy textured fabric is just so gentle and cozy on the skin. The interior of the slipper has a terry cloth lining which is typically made from 100% cotton. The weave structure of terry cloth is unique because it’s woven in a way that mimics the effects of a sponge. This means it pulls sweat, perspiration, and other moisture away from your feet, keeping that sticky or slick feeling from occurring, while also preventing bacterial buildup. And because it’s made of natural fibers, you have better airflow and circulation, ensuring that your feet stay dry no matter how long you wear them. As an added bonus, the special looped texture provides a gentle cushioning on the skin, giving it an almost “cloud-like” feel that’s perfect for wear all year long.

Related: Walmart’s cozy slippers that come in 19 fall-themed patterns start at $11

The slippers have a flexible, thin rubber sole with a sturdy grip to prevent slipping on smooth indoor surfaces like wood or tile. Although they can be worn outside, these slippers are best for use in and around your home. As much as we are a proponent of wearing comfy shoes out to the store, these ones aren’t quite built for adventures outside the home. 

Details to know

Material: Fleece, terry cloth, and rubber. 

Sizes: 5 through 11.

Colors: Six.  

The adjustable hook and loop are a favorite feature for shoppers because they allow you to customize the perfect fit to your foot. Perfect for navigating chilly indoor temperatures and cold floors, the thick soles help keep your feet warm very well. “These are absolutely the most comfortable slippers I have ever owned,” one shopper said. “Most slippers keep your foot from bending properly and cause sore foot muscles. These are incredible.”

Shop more deals 

EverFoams Memory Foam Loafer Slippers, $18 (was $25) at Walmart

Ecetana Knit House Slippers, $13 (was $18) at Walmart

Poropl Slippers, $4 (was $5) at Walmart

Whether it’s chilly mornings you’re dealing with, brisk afternoons, or cold evenings, with the Ecetana Slippers you can stay warm and cozy all autumn and winter long. 

Around the world, beer pours vary from sizing to foam amount and more. From the Czech Republic to Japan to Italy, beer pours showcase culture.

Tire shops can’t hang on to workers, so San Francisco startup PitPro Automation installed its first robotic system.

We’re heading into gift card season, and that comes with its own set of risks, which go beyond your uncle getting you a $5 Starbucks card when you got him a cashmere sweater.

“Gift card draining is a type of fraud in which thieves steal the value from a gift card, often before the legitimate buyer or recipient even gets a chance to use it,” according to Monterra Credit Union.

Sometimes fraudsters remove inactivated cards from store shelves, record or photograph the card numbers and PINs, then place them back on the rack. 

Once someone buys and activates the card at checkout, the scammers monitor the card online and, as soon as it’s loaded with value, quickly spend or transfer the funds, leaving the real buyer with a zero-balance card. 

Because the tampering can be subtle (sometimes just a barcode sticker is replaced or the package is resealed), unsuspecting buyers frequently have no idea the card was compromised. 

“We’re talking hundreds of millions of dollars, potentially billions of dollars, [and] that’s a substantial risk to our economy and to people’s confidence in their retail environment,” Adam Parks, a Homeland Security assistant special agent in charge, told ProPublica.

A multi-agency investigation recently took down a gift card tampering ring that targeted Walmart, Target, and Walgreens locations across multiple states.

Suspects arrested in Walmart, Target, and Walgreens case

“The Texas Financial Crimes Intelligence Center (TX FCIC) led a multi-agency investigation that dismantled an organized gift card tampering operation spanning Texas and Arkansas, resulting in the arrest of four suspects during two separate operations in Sugar Land and Tyler. Investigators recovered hundreds of tampered gift cards representing more than $100,000 in potential losses from a single day of activity,” according to a press release from the Texas Department of Licensing & Regulation (TDLR).

The investigation began in June 2026 after the Walgreens Major Crimes Investigative Team alerted special agents with TX FCIC Gulf Coast Field Operations to tampered gift cards found on store shelves in Willis, added TDLR.

The state agency shared the mutliple steps the case followed:

Walgreens provided photos of the suspect and the white Lexus NX he was driving.

Working with retail partners, TX FCIC special agents identified additional suspects and a second vehicle, a white Mercedes C300, connected to the scheme.

On June 26, 2026, TX FCIC and the Sugar Land Police Department arrested two suspects after observing them place tampered gift cards at Dollar Tree and Family Dollar stores in Sugar Land.

In July 2026, investigators learned the suspect driving the white Lexus NX had expanded the scheme to retail locations in Arkansas.

TX FCIC worked with retail partners, including Walgreens, Target, Walmart, CVS, Albertsons, and Dollar Tree, to confirm the activity and remove tampered cards from store shelves.

On Aug. 24, 2026, TX FCIC special agents and the Tyler Police Department arrested a third suspect after observing him place tampered gift cards at Walmart and Walgreens stores in Tyler.

Investigators also found bundles of tampered cards intended for other stores in his vehicle. Investigators later executed a search warrant at a nearby hotel, where they arrested a fourth suspect and found hundreds of additional tampered gift cards and tampering tools.

“Investigators say the suspects used a coordinated scheme to avoid detection. Gift cards were stolen from store shelves and compromised in a hotel room or residence, where the security scratch-off coating was peeled back to record each card’s activation code and serial number. The cards were then resealed and returned to store shelves. Once a customer purchased and activated a tampered card, the suspects, who already had the activation code, immediately drained the balance electronically, leaving the customer with nothing,” the TDLR shared.

Be careful buying a gift card without checking the balance.Shutterstock

How big a problem is gift card draining?

The scale of the problem is difficult to measure, but available consumer data suggest that gift-card fraud affects a significant number of Americans.

“Gift cards remain a holiday staple, with 7 in 10 consumers (72%) planning to purchase them this year. Unfortunately, criminals have become experts at draining these cards. One-third (33%) of adults have given or received a gift card with no balance,” according to AARP.

It’s also a crime that may sometimes go unreported, as the gift receiver may not know what happened. I, for example, have received both Target and Starbucks cards for relatively low values that were empty.

Was it gift card draining or a mistake in activating the card? I didn’t know and couldn’t really ask the gift giver.

Broadly, gift card fraud is a significant problem.

“The Federal Trade Commission received more than 41,000 fraud reports in 2024 representing $212 million in losses from scams involving gift cards and prepaid cards. Using data compiled through the third quarter of last year, there were over 30,000 reports and $199 million in losses, with expectations that losses in 2025 will be similar,” the National Conference of State Legislators shared.

How to protect yourself and your gifts

The Federal Trade Commission (FTC) shared tips on how to protect yourself from gift card draining scams.

If you’re buying gift cards this holiday season:

Check for signs of tampering. If it looks like someone scratched off the back of a gift card or removed any stickers, tell a cashier or manager. Scammers might tamper with gift cards in batches, so if you see something suspicious on one card, consider looking at a different store.

Pay by credit card if you can. You get the most protections when you pay with a credit card. If you run into problems and file a chargeback, your credit card will investigate and you might get your money back.

Keep copies of the gift card and store receipt. If the gift card doesn’t work or doesn’t have any money on it, the number on the card and store receipt will help you report to the gift card company. The sooner you report, the better. You can also report fraud to the FTC.

Report gift card scams at ReportFraud.ftc.gov.

Forbes’ Steve Weisman shared one more useful safety tip.

“When buying a gift card, only purchase cards from behind the customer service desk, and if the card is preloaded, always ask for the card to be scanned to show that it is still fully valued. This avoids all of the problems of tampering with the card before it is sold,” he wrote.

Related: Walmart takes on Costco with expanded gas savings

Also in Weekend Reads: The bond market selloff’s consequences for AI, a threat to the buy-and-hold investment style and advice from the Moneyist.

When people are worried about paying their mortgage and putting food on the table, what they’re wearing tends to become less of a focus.

“A long-feared cyclical slowdown has arrived. Consumers, affected by the recent period of high inflation, are increasingly price-sensitive. There is also the surprising rise of dupes, the acceleration of climate change, and the continued reshuffling of global trade,” according to McKinsey’s State of Fashion 2025.

Fast-fashion chains, which offer lower prices, should be resilient during challenging economic times. Yet chains like Rhapsodielle, a regional fast-fashion brand, have faced the same controversies and consumer pushback over environmental concerns as bigger brands such as H&M and Shein.

Now, Rhapsodielle has shared plans to close down all of its stores.

Rhapsodielle shares shutdown plan

Rhapsodielle has decided to close all of its stores. The shutdown notifications began with an Instagram Post confirming the shutdown of the Henderson, Nevada, location.

“As we prepare to close this chapter, we invite you to visit us one last time,” said the Instagram post. “Thank you for allowing us to be a small part of your lives, your celebrations and your everyday moments,” the company shared.

That was followed by the company sharing that all of its remaining stores would be closing.

“Rhapsodielle employees confirmed its remaining two locations will be closing at the end of October. The storefronts are at 8455 W. Warm Springs Road and 1300 W. Sunset Road, Suite 1211, inside the Mershops Galleria at Sunset in Henderson,” according to the Las Vegas Review-Journal.

The chain will still accept store credit and gift cards until it closes, according to the Instagram post.

Previously, the retailer closed its North Nellis and East Charleston Boulevard location, as well as its West Charleston and South Rampart Boulevard locations. Both of the locations are listed as “permanently closed” on Apple Maps, the Review-Journal added.

RTM Nexus CEO Dominick Miserandino thinks that Rhapsodielle faces issues beyond the problems H&M and Schein have struggled with.

“The problem for a smaller fast-fashion chain is the math. You have rent, labor, and inventory tied up in physical stores, while the customer can compare you against dozens of online alternatives in seconds. If you miss a trend or buy too deeply, you are marking it down to get it out the door. You don’t need many mistakes like that before a store stops making economic sense,” he told TheStreet.

Fast-fashion chains have struggled.arto_canon / Getty Images

Here’s why fast-fashion chains are struggling

Fast-fashion chains have faced significant pushback over their impact on the environment.

“People in the U.S. throw away at least 17 million tons of textiles every year — about 100 pounds of clothing per person. At the same time, unsold blouses, jackets, and other fashion-industry leftovers end up in dumps such as the one in Chile’s Atacama Desert, so vast as to be visible from space. Many of these items are fast fashion — made quickly, sold cheaply, and in style for too short a time because the industry relies on novelty to keep consumers buying,” Scientific American reported.

That’s a bigger problem than it seems.

“Every year the global garment industry emits up to 10% of the world’s greenhouse gas output and uses enough water to fill at least 37 million Olympic-size swimming pools,” the publication shared.

Fast-fashion retailers sit in an odd place because consumers do want cheap clothes.

“Even though shoppers have proven less willing than hoped to pay extra for planet-friendly products, making the business case for sustainability less obvious to executives among other competing priorities, the mounting cost of climate change, and government action to combat it, mean sustainability must remain at the top of the agenda,” according to McKinsey.

Fast fashion has also been hit by higher costs due to tariffs, although that has been a fluid situation.

“It takes a little bit of their competitive edge away,” GlobalData Managing Director Neil Saunders told the Los Angeles Times.

“They either have to take a hit on their margins,” Saunders said, “or they have to put prices up for the consumer, and given that their whole business model is low prices, it might reduce sales.”

Rhapsodielle quick facts:

Las Vegas-area fast-fashion retailer founded by Julie Kwon in 2009.

The retailer is closing its final two stores at the end of October 2026.

Rhapsodielle previously operated four other Las Vegas-area stores, including locations on North Nellis, East Charleston, West Charleston, and South Rampart.

The retailer’s website describes Rhapsodielle as offering fast fashion at affordable prices.Sources: Las Vegas Review-Journal, Rhapsodielle, Better Business Bureau