Berkshire Hathaway shares fell Monday after the company reported quarterly results that missed some analysts’ expectations and issued a cautious message about deploying its cash.
By early afternoon, Berkshire’s Class A shares were down as much as 5.3%. Class B shares, which are worth about 1/1,500th as much as the Class A shares, declined by a similar percentage. The drop marked the largest slide since May 5, when shares fell as much as 6.8% after Warren Buffett unexpectedly announced he would step down as chief executive and that Greg Abel would take over in 2026. Buffett has led Berkshire since 1965 and remains chairman.
On Saturday, Berkshire said fourth-quarter operating profit fell 30% to $10.2 billion. Operating profit excludes gains and losses on common stocks, including holdings led by Apple. The results included a 38% overall decline at Geico and other insurance businesses.
In his first annual letter to shareholders as chief executive, Abel addressed challenges facing the company’s insurance operations. He said Geico may continue to face pressure to retain customers as competitors lower car insurance rates. In addition, he said other insurance and reinsurance operations face pricing pressure as more capital enters their markets.
Abel also discussed Berkshire’s cash position. The company held $373 billion in cash. He said the large cash stake did not signal a “retreat from investing.” However, he did not indicate that Berkshire planned to resume stock buybacks after 1-1/2 years without repurchases or to begin paying a shareholder dividend.
“We will assess value carefully, act patiently, and hold for the long term – preferably forever,” Abel wrote.
Analysts responded to the results. Meyer Shields of Keefe, Bruyette & Woods, who rates Berkshire “underperform,” said Monday that results “broadly” missed forecasts. He cited weakness in the BNSF railroad, as well as in energy, manufacturing, and retailing. Shields lowered his 2026 earnings forecast for Berkshire by 5%.
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