Berkshire Hathaway Profits Dip
Warren Buffett's Berkshire Hathaway reported a drop in quarterly profit, dragged down by weakness in its core insurance operations. A significant writedown on its stake in Occidental Petroleum also contributed to the decline, highlighting the volatility of its large energy sector bets.
Fourth-quarter operating earnings plunged by over 29% to $10.2 billion compared to the same period a year earlier. This decline was significantly influenced by a 54% drop in profits from insurance underwriting, a core part of Berkshire's business. A major factor in the earnings slide was a $4.5 billion writedown on Berkshire's stake in Occidental Petroleum. The company also took an impairment charge on its Kraft Heinz investment earlier in 2025. These moves reflect the volatility in the value of its substantial holdings in the energy and consumer goods sectors. The company's massive cash hoard saw a slight dip but remained substantial at $373.3 billion. This report marks the first to be released with Greg Abel at the helm as CEO, who has pledged to maintain the financial discipline established by his predecessor, Warren Buffett. While the insurance and investment arms faced headwinds, Berkshire's manufacturing, retail, and service businesses saw modest gains. However, the company noted "sluggish" consumer demand affecting some of its well-known brands. The report also marks the thirteenth consecutive quarter where Berkshire was a net seller of stocks.
