Warren Buffett’s company, Berkshire Hathaway, recently faced some challenges that caused its stock to dip. Operating earnings fell 4% from last year to $11.16 billion. While many sectors like retail and energy reported growth, the insurance side of the business dragged down overall earnings.
After the news, both Class A and B Berkshire shares dropped over 2%. Since reaching an all-time high in May, the stock has decreased by about 12%. This was just before Buffett announced that Greg Abel would become CEO in 2025.
A surprising turn came when Berkshire reported a $3.8 billion loss from its investment in Kraft Heinz, its biggest write-down since owning the stake. This troubles Buffett, as he’s acknowledged that he paid too much for Kraft Heinz. Increased competition in the food market has made it harder for the brand to shine.
With Berkshire’s cash on hand sitting at a hefty $344.1 billion, it became a net seller of stocks for the 11th straight quarter, offloading $4.5 billion in the first half of 2025. Despite the turbulent market, Berkshire didn’t buy back any shares in this period.
Investment experts are watching closely. Kyle Sanders from Edward Jones believes that while Greg Abel may take time to earn investors’ trust, upcoming moves—like greater investment activity or a large acquisition—could change the game. However, none of these were seen in the last quarter, disappointing some analysts.
In a world where market dynamics are ever-changing, companies like Berkshire Hathaway must adapt quickly. As Buffett prepares to hand over the reins, investors will be keen to see how future leadership influences performance.
For more information on Berkshire Hathaway and stock performance, you can check resources like CNBC or Yahoo Finance.
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