BRK-B: Berkshire Hathaway's Q4 Operating Earnings Drop 29%
Berkshire Hathaway reported its fourth-quarter 2025 results on Saturday, marking Warren Buffett's final quarter as CEO before handing the reins to longtime deputy Greg Abel. Operating earnings fell 29% to $10.2 billion from $14.56 billion in the year-earlier period, driven primarily by a sharp decline in insurance underwriting results. The stock trades at $505.22 per share, giving the conglomerate a $1.09 trillion market capitalisation. The headline earnings decline masks a more nuanced picture. Berkshire's cash pile stood at $373.3 billion at year-end, down just 2.1% from September's record, as Buffett continued his restrained approach to capital deployment in his final months. Abel, in his first annual shareholder letter, pledged to maintain Berkshire's "fortress-like" balance sheet while identifying Apple, American Express, Coca-Cola, and Moody's as effectively permanent holdings — signalling continuity rather than upheaval. For investors parsing the leadership transition, the Q4 numbers provide both a data point and a litmus test: can Abel maintain Berkshire's operating machine while eventually putting that $373 billion cash hoard to work in a way that moves the needle for a trillion-dollar enterprise?