Key Highlights
- Both BRK.A and BRK.B shares have declined for eight consecutive trading days — the company’s most extended losing period since late 2018
- Class A shares have declined 4.7% while Class B shares are down 4.9% from their March 17 closing highs
- Fourth quarter 2025 operating profits decreased approximately 30% compared to the prior year, totaling $10.2 billion; insurance underwriting income plunged 54%
- CEO Greg Abel reactivated the company’s stock repurchase program on March 4 while also purchasing $15.3 million worth of shares personally
- The conglomerate acquired roughly 2.5% of Tokio Marine Holdings for $1.8 billion, a position that has already appreciated 24% this week
Shares of Berkshire Hathaway have experienced eight consecutive days of declines — marking the company’s most prolonged losing streak since December 2018. The Class A shares have retreated 4.7% while Class B shares have dropped 4.9% from their most recent positive close on March 17.
Berkshire Hathaway Inc., BRK-B
Broader market weakness has contributed to the decline. The S&P 500 has fallen 5.2% during the identical timeframe and stands approximately 7% lower year-to-date, experiencing its own five-week consecutive decline. Escalating energy costs and geopolitical tensions surrounding the Iran situation have dampened investor confidence.
The timing presents challenges for Berkshire. Greg Abel officially assumed the CEO position at the beginning of 2026, while Warren Buffett continues in his role as chairman. Shares have declined more than 13% since Buffett’s announcement last year regarding his decision to relinquish the CEO position.
The company’s recent financial performance added to investor concerns. Operating earnings for the fourth quarter of 2025 reached $10.2 billion, representing approximately a 30% year-over-year decrease. Full-year operating earnings totaled $44.5 billion, declining 6% compared to 2024.
The insurance underwriting segment experienced the sharpest decline, falling 54% year-over-year in Q4 to $1.56 billion. While this comparison reflected an exceptionally robust prior-year period, investors reacted negatively when the February 28 results were announced.
BNSF, Berkshire’s railroad operation, continues experiencing margin compression from persistently high diesel fuel expenses. The conglomerate’s consumer and manufacturing divisions are similarly vulnerable to increased energy prices that reduce consumer purchasing power.
New CEO Takes Action
Despite the stock’s recent weakness, Abel has acted swiftly to communicate his capital deployment philosophy. Berkshire reinitiated its share repurchase program on March 4 — marking the first buybacks since May 2024. In a CNBC interview, Abel explained the company repurchases shares when trading below intrinsic value, indicating he views current prices as attractive.
Additionally, he revealed a personal acquisition of $15.3 million in Berkshire shares and pledged to invest his complete after-tax compensation in the company annually throughout his tenure as CEO.
Berkshire concluded 2025 holding $373.3 billion in cash, cash equivalents, and Treasury bills, decreasing from the Q3 peak of $381.6 billion but remaining among the largest corporate cash reserves worldwide.
Strategic Investment in Japanese Insurer
In a notable transaction announced this week, National Indemnity, Berkshire’s insurance subsidiary, invested $1.8 billion to acquire slightly below 2.5% ownership in Tokio Marine Holdings — Japan’s most established insurance enterprise.
Tokio Marine shares jumped more than 24% following Monday’s announcement. The stake’s current market value has already reached nearly $2.3 billion.
Berkshire maintains the flexibility to expand its ownership to just under 10% through open-market transactions. Any position exceeding that threshold requires board authorization.
The transaction was supervised by Ajit Jain with Buffett reportedly providing advisory input. Tokio Marine issued fresh shares for this investment and intends to repurchase an equivalent quantity to avoid shareholder dilution.
Both organizations will cooperate on reinsurance opportunities and jointly explore strategic investment prospects. Tokio Marine characterized the alliance as a “long-term strategic relationship.”
Berkshire’s current portfolio of five Japanese trading company investments — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — have appreciated between 42% and 124% during the past 52 weeks, with aggregate market capitalization exceeding $44 billion.
Mitsubishi achieved an all-time closing record on Friday.
