Key Highlights
- Both BRK.A and BRK.B shares have declined for eight consecutive sessions — the most extended slide since late 2018
- Class A shares retreated 4.7% while Class B dropped 4.9% from their March 17 peak
- Fourth-quarter 2025 operating profits tumbled approximately 30% annually to $10.2 billion; insurance underwriting income plunged 54%
- CEO Greg Abel reactivated share repurchases on March 4 and acquired $15.3 million of company stock personally
- The conglomerate invested $1.8 billion for roughly 2.5% ownership in Tokio Marine Holdings, whose shares jumped 24% following the announcement
Berkshire Hathaway is experiencing an eight-session downturn — marking its most prolonged consecutive decline since the final month of 2018. Class A shares have retreated 4.7% while Class B shares declined 4.9% from their most recent positive close on March 17.
Berkshire Hathaway Inc., BRK-B
Broader market conditions have amplified the pressure. The S&P 500 has dropped 5.2% during the identical period and sits roughly 7% lower year-to-date, extending its own five-week downward trajectory. Escalating energy costs and geopolitical tensions stemming from the Iran situation are dampening investor confidence.
The timing presents particular challenges for Berkshire. Greg Abel formally assumed the chief executive position at the beginning of 2026, while Warren Buffett retained his chairman title. Shares have declined more than 13% since Buffett’s announcement last year regarding his intention to relinquish the CEO position.
The company’s financial performance has compounded concerns. Fourth-quarter 2025 operating profits registered $10.2 billion, representing approximately a 30% year-over-year contraction. Full-year operating profits reached $44.5 billion, down 6% compared to 2024.
Insurance underwriting performance proved especially disappointing, plummeting 54% year-over-year in Q4 to $1.56 billion. While this comparison reflected an exceptionally robust prior-year period, investors reacted negatively when results were released on February 28.
BNSF, Berkshire’s railway operation, continues confronting margin compression from heightened diesel expenses. The conglomerate’s consumer-oriented and manufacturing divisions also face exposure to elevated energy costs that are reducing consumer purchasing power.
Abel Takes Swift Action
Despite the share price weakness, Abel has acted decisively to communicate capital deployment priorities. Berkshire restarted share repurchases on March 4 — marking the first buyback activity since May 2024. Abel informed CNBC that the company repurchases shares when trading below intrinsic value, indicating his view that current valuations represent an attractive entry point.
He further disclosed a personal acquisition of $15.3 million in Berkshire shares and pledged to invest his complete after-tax compensation in company stock annually throughout his tenure as CEO.
Berkshire concluded 2025 holding $373.3 billion in cash, equivalents, and Treasury bills, declining from a third-quarter peak of $381.6 billion but remaining among the most substantial corporate cash reserves worldwide.
Japanese Insurance Investment
In a distinct development this week, Berkshire’s insurance subsidiary National Indemnity committed $1.8 billion to acquire slightly below 2.5% ownership in Tokio Marine Holdings — Japan’s longest-established insurance provider.
Tokio Marine shares soared more than 24% after Monday’s disclosure. The stake now carries a valuation approaching $2.3 billion.
Berkshire retains flexibility to expand its position to just under 10% via open-market transactions. Any ownership exceeding that threshold necessitates board authorization.
The transaction was managed by Ajit Jain and reportedly included Buffett in a consultative role. Tokio Marine issued fresh shares for the acquisition and intends to repurchase an equivalent quantity to maintain shareholder neutrality.
The two organizations will cooperate on reinsurance operations and jointly explore strategic investment opportunities. Tokio Marine characterized the arrangement as a “long-term strategic relationship.”
Berkshire’s current portfolio of five Japanese trading house investments — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — has appreciated between 42% and 124% throughout the past 52 weeks, with aggregate market capitalization exceeding $44 billion.
Mitsubishi achieved a record closing high on Friday.
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