Berkshire Hathaway Reports Earnings Decline Amid Stock Sell-Off

Omaha, Nebraska — Berkshire Hathaway reported a 4% decline in operating earnings for the second quarter of 2025, leading to stock declines for the conglomerate as it navigates a challenging market.

The company’s operational earnings dipped to $11.16 billion, influenced by weaker performance in its insurance sector despite increases in its railroad, energy, manufacturing, service, and retail businesses.

Both Class A and B shares of Berkshire Hathaway fell more than 2% on Monday, as the stock has dropped about 12% since its peak in early May when Warren Buffett, 94, announced the succession plan for Greg Abel to lead the company by the end of 2025.

A significant surprise for investors was a $3.8 billion write-down of Berkshire’s stake in Kraft Heinz, marking the first loss on this investment. Reports indicate that Kraft Heinz is considering a spinoff of its grocery business, prompting two Berkshire executives to resign from the company’s board earlier this year.

Bill Stone, Chief Investment Officer of The Glenview Trust Company and a Berkshire shareholder, commented, “The investment had been carried on Berkshire’s books for more than its market value for some time. Buffett has long acknowledged that he paid too much for Kraft Heinz, especially in light of the increased competition in the branded food category.”

Despite the earnings decline, Buffett’s cash reserves remain near a record high at $344.1 billion. However, Berkshire was a net seller of stocks for the 11th consecutive quarter, offloading $4.5 billion in equities during the first half of 2025.

The company did not repurchase any stock in the first half of 2025, even as share prices fell significantly. Analyst Kyle Sanders from Edward Jones pointed out, “While we believe Mr. Abel will build credibility with investors over time, we think near-term catalysts for BRK are increased investment activity, a potential large acquisition, and share repurchases. None of those happened this quarter, which we view as somewhat disappointing.”