Berkshire Hathaway operating profit crashes in Warren Buffett's last quarter as conglomerate's chief ‌executive

Berkshire Hathaway on Saturday said operating profit fell in the fourth quarter, reflecting lower income from its insurance operations, and wrote down a longstanding investment in Occidental Petroleum. The quarter was Warren Buffett's last as the conglomerate's chief ‌executive, a job ⁠now ⁠held by Greg Abel. Buffett remains chairman.

Berkshire also reported ending 2025 with $373.3 billion of cash, giving Abel the firepower ​to make the kind of major acquisitions that eluded Buffett over the last decade. It was also the ​thirteenth consecutive quarter in which Berkshire sold more stocks than it bought, and the sixth with no share buybacks.

Quarterly operating profit fell 30 per cent to $10.2 billion, or about $7,092 per Class A share, ​from $14.53 billion a year earlier. Net income fell 3 per cent to $19.2 billion ⁠from $19.69 billion, ‌as the writedown and lower operating profit offset the value of Berkshire's holdings ​in Apple, ​American Express and other stocks.



Berkshire Hathaway Pays Tribute to Warren Buffett


For the full year, ⁠operating profit fell 6 per cent to $44.49 billion, while net income fell 25 per cent ​to $66.97 billion. Buffett had long urged investors to ignore fluctuations in Berkshire's ​net income, which reflect accounting rules that require Berkshire to report gains and losses on stocks that Berkshire isn't selling.

In his first annual letter to Berkshire shareholders, Abel paid tribute to his mentor, calling Buffett a "remarkable CEO" and "arguably the greatest investor of all time" and pledging to maintain his discipline in determining how to invest Berkshire's capital.

"We are committed to strengthening ‌the great legacy built by Warren Buffett and his business partner Charlie Munger, ensuring it endures through our commitment to excellence , Abel wrote, referring to ​Berkshire's late vice ​chairman. "I recognize how you want ⁠us to succeed together, and to do so in the right way."

Berkshire's $4.5 billion writedown for Occidental reflected its belief that the recent decline in the oil company's stock price was not "temporary," ​though it said it had no intention to sell any of its stock.

The writedown was Berkshire's second in 2025, in addition to a writedown of its investment in Kraft Heinz.

Quarterly insurance profit fell 38% to $4.63 billion. Falling interest rates reduced income on Berkshire's cash, while pricing pressures limited the willingness of the Geico auto insurer and reinsurance businesses to add customers.