Berkshire Hathaway (BRK.B), which wrapped up its closing yr beneath Warren Buffett’s management, reported Saturday that working earnings for the fourth quarter totaled $10.2 billion, down 29.8% from final yr, on weakness from its insurance enterprise.
Last yr’s working earnings totaled about $44.5 billion, down 6% from the earlier yr. The Omaha, Nebraska-based conglomerate reported that internet revenue fell to $19.2 billion from $19.69 billion a yr earlier.
Berkshire earned $7.2 billion final yr from insurance underwriting, a 19.5% drop from 2024. Berkshire’s insurance underwriting arm continues to be led by automobile insurer Geico, which has seen weaker buyer retention resulting from broad price will increase in current years, in response to the report.
The report marks the primary yr Berkshire’s annual letter to shareholders wasn’t penned by Buffett, 95, whose folksy monetary knowledge was a must-read for a lot of traders. The Oracle of Omaha introduced in May 2025 that he would step down on the finish of the yr and named long-time lieutenant Greg Abel as his successor. Abel has now taken the helm after Buffet’s six a long time of main the famed firm.
In his first letter, Abel sought to reassure traders that Berkshire stays a dependable place to speculate and that the core ideas are nonetheless intact.
“To invest in Berkshire has long been a vote of trust in our founder – a trust that now rests with Berkshire. Your capital is commingled with ours, but it does not belong to us. Our role is stewardship. That stewardship has shaped a culture and reinforced a set of values that are not the result of our success, but the reason for it,” Abel wrote in his first annual observe to traders.
Abel famous that whereas Buffett continues to function Berkshire chairman, the famed investor is in the workplace 5 days per week and continues to function an proprietor.
It’s been nearly 5 years since Abel, who has labored for Berkshire since 2000, was first designated to take over as the following chief govt. Charlie Munger, who served as Berkshire’s vice-chair from 1978 till his dying in 2023, as soon as stated Abel would “keep the culture,” and Buffett final yr stated his successor could be a “more active” chief.
“We will encounter business successes and setbacks. When we fail, we will say so. Doing the right thing also means rectifying our errors,” Abel stated, including that the corporate would “act decisively and ruthlessly” when “a small minority” fails to fulfill requirements.
Berkshire’s money pile continues to be flowing. Berkshire’s money and treasury holdings reached a file $373.1 billion, although Abel stated that Berkshire’s large money pile doesn’t sign a “retreat” from investing, as the corporate will stay “patient and disciplined” to profit house owners.
Abel will lead the corporate’s annual shareholder assembly, which has been deemed “Woodstock for Capitalists,” on May 2.
While the occasion might not have Buffett as a brand mascot for Squishmallows and cardboard cutouts, the previous CEO famous final yr that Abel “also understands that if you start fooling your shareholders, you will soon believe your own baloney and be fooling yourself, as well.”
“I am honored by the responsibility of continuing to build our company and our partnership in the years ahead. We move forward with great intent and purpose,” Abel wrote.