Key Highlights
- Both BRK.A and BRK.B shares have declined for eight consecutive trading days — the longest slide in over six years
- Class A shares are down 4.7% while Class B shares have dropped 4.9% from their March 17 peak
- Fourth quarter 2025 operating profits declined approximately 30% compared to the prior year, totaling $10.2 billion; insurance underwriting profits plunged 54%
- CEO Greg Abel reinitiated share repurchases on March 4 and made a personal $15.3 million investment in company stock
- The conglomerate deployed $1.8 billion for approximately 2.5% ownership in Tokio Marine Holdings, whose shares jumped 24% following the announcement
Berkshire Hathaway shares have experienced eight consecutive days of losses — representing the company’s most extended decline since December 2018. Since closing positively on March 17, Class A shares have retreated 4.7% while Class B shares have fallen 4.9%.
Berkshire Hathaway Inc., BRK-B
Broader market conditions have contributed to the pressure. During this period, the S&P 500 has declined 5.2% and is down approximately 7% for the year, experiencing its own five-week losing streak. Escalating energy prices and geopolitical tensions related to Iran have dampened investor confidence.
The timing presents challenges for Berkshire. Greg Abel formally assumed the CEO position in early 2026, with Warren Buffett continuing as chairman. Since Buffett’s announcement last year regarding his departure from the CEO role, shares have declined more than 13%.
Recent financial results added to investor concerns. Operating profits for the fourth quarter of 2025 totaled $10.2 billion, representing a roughly 30% year-over-year decline. Full-year operating profits reached $44.5 billion, down 6% compared to 2024.
The insurance underwriting segment experienced significant headwinds, with fourth-quarter profits falling 54% year-over-year to $1.56 billion. While this comparison faced a tough benchmark from an exceptionally strong prior-year quarter, the results still rattled investors when released on February 28.
BNSF, Berkshire’s railroad operation, continues grappling with margin compression due to elevated diesel expenses. The company’s consumer-facing and manufacturing segments are similarly vulnerable to rising energy costs that reduce consumer purchasing power.
Abel’s Strategic Initiatives
Despite the stock’s recent weakness, Abel has wasted no time implementing capital deployment strategies. On March 4, Berkshire reinitiated share repurchases — marking the first buyback activity since May 2024. In a CNBC interview, Abel indicated the company repurchases shares when trading below intrinsic value, signaling his view that current prices represent an attractive entry point.
Additionally, Abel revealed a personal $15.3 million stock purchase and pledged to invest his entire after-tax CEO compensation in company shares annually throughout his tenure.
Berkshire closed 2025 holding $373.3 billion in cash, cash equivalents, and Treasury bills, down from a third-quarter record of $381.6 billion but still representing one of the world’s largest corporate cash reserves.
Strategic Investment in Tokio Marine
This week brought news of a significant international move. Berkshire’s insurance subsidiary National Indemnity invested $1.8 billion for slightly under 2.5% of Tokio Marine Holdings — Japan’s oldest insurance institution.
Tokio Marine shares soared more than 24% after Monday’s announcement. The position’s value has already climbed to nearly $2.3 billion.
Berkshire retains the option to expand its stake to just below 10% through open-market acquisitions. Any ownership exceeding that threshold would require board authorization.
Ajit Jain led the transaction, with Buffett reportedly providing advisory input. Tokio Marine issued fresh shares for the investment and intends to repurchase an equivalent amount to maintain existing shareholder equity.
The two insurance giants will cooperate on reinsurance opportunities and pursue joint strategic investments. Tokio Marine characterized the arrangement as a “long-term strategic relationship.”
Berkshire’s current holdings in five Japanese trading companies — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — have appreciated between 42% and 124% over the trailing twelve months, with aggregate market value exceeding $44 billion.
Mitsubishi achieved a record closing price on Friday.
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