Berkshire Hathaway Profits Decline
Berkshire Hathaway reported a drop in quarterly profits, a potential warning sign for the broader U.S. economy. The conglomerate's results were dragged down by weakness in its insurance operations and a writedown of its stake in Occidental Petroleum, reflecting volatility in the energy sector.
Fourth-quarter operating earnings plummeted by over 29% to $10.2 billion compared to the same period a year earlier. This was driven by a staggering 54% drop in insurance underwriting profits, which fell to $1.56 billion. The company's net income for the quarter was also impacted by a significant $4.5 billion impairment charge on its investments in Kraft Heinz and Occidental Petroleum. For the full year, net income attributable to shareholders saw a 25% decrease, falling to $66.97 billion from $89 billion in the previous year. This earnings report marks the final quarter with Warren Buffett as CEO. His successor, Greg Abel, took the helm at the beginning of 2026 and released his first annual letter to shareholders, vowing to continue the culture built by Buffett. Despite the drop in profits, Berkshire Hathaway's cash hoard remains substantial, ending the quarter at $373.3 billion. The company refrained from buying back its own shares for the sixth consecutive quarter.
