Key Highlights
- Both BRK.A and BRK.B shares have declined for eight consecutive trading days — the longest such streak since late 2018
- Class A shares are off 4.7% while Class B shares have dropped 4.9% since their peak on March 17
- Fourth quarter 2025 operating profits declined approximately 30% compared to the prior year, reaching $10.2 billion; insurance underwriting profits plunged 54%
- CEO Greg Abel reactivated the share repurchase program on March 4 and made a personal investment of $15.3 million in company stock
- The conglomerate deployed $1.8 billion to acquire roughly 2.5% of Tokio Marine Holdings, whose shares jumped 24% following the announcement
Berkshire Hathaway’s shares have now declined for eight consecutive trading days — marking the longest stretch of losses the investment giant has experienced since late December 2018. Since closing in positive territory on March 17, Class A shares have retreated 4.7% while Class B shares have fallen 4.9%.
Berkshire Hathaway Inc., BRK-B
The wider equity market has added to the pressure. The S&P 500 has dropped 5.2% during the same timeframe and sits roughly 7% lower year-to-date, currently enduring its own five-week losing streak. Escalating energy prices and geopolitical tensions stemming from the Iran situation continue to dampen investor confidence.
The timing presents a notable challenge for Berkshire. Greg Abel formally assumed the chief executive position at the beginning of 2026, with Warren Buffett transitioning to the chairman role. Since Buffett’s announcement last year regarding his CEO departure, the stock has declined more than 13%.
The company’s recent financial performance added to investor concerns. Operating earnings for the fourth quarter of 2025 totaled $10.2 billion, representing approximately a 30% decline from the same period a year earlier. Full-year operating earnings reached $44.5 billion, down 6% compared to 2024.
The insurance underwriting segment bore the brunt of the weakness, plummeting 54% year-over-year in Q4 to $1.56 billion. While this reflected a comparison against an exceptionally robust prior-year quarter, the sharp decline nevertheless unsettled investors when the February 28 results were released.
BNSF, Berkshire’s railroad operation, continues grappling with margin compression due to elevated diesel fuel expenses. The conglomerate’s consumer-focused and manufacturing divisions also face headwinds from rising energy costs that are squeezing household budgets.
Abel Takes Swift Action
Notwithstanding the recent stock performance challenges, Abel has acted decisively to communicate his capital deployment strategy. Berkshire recommenced share repurchases on March 4 — marking the first buyback activity since May 2024. In a CNBC interview, Abel indicated that repurchases occur when shares trade below the company’s calculated intrinsic value, implying he views current valuations as attractive.
Additionally, he revealed a personal stock purchase totaling $15.3 million and pledged to invest his entire after-tax compensation in Berkshire shares annually throughout his tenure as chief executive.
Berkshire concluded 2025 holding $373.3 billion in cash, cash equivalents, and Treasury securities, down slightly from the third quarter’s record $381.6 billion but remaining among the largest corporate cash reserves worldwide.
Strategic Investment in Tokio Marine
In a notable transaction announced this week, Berkshire’s insurance subsidiary National Indemnity invested $1.8 billion to acquire just under 2.5% of Tokio Marine Holdings — Japan’s longest-established insurance provider.
Tokio Marine’s stock price soared more than 24% in the wake of Monday’s announcement. The position is currently valued at nearly $2.3 billion.
Berkshire retains the option to expand its ownership to just below 10% through open-market acquisitions. Any stake exceeding that threshold would require board authorization.
The transaction was led by Ajit Jain and reportedly included Buffett in a consulting role. Tokio Marine issued fresh shares for the investment and announced plans to repurchase an equivalent number to maintain shareholder equity.
The two insurance companies intend to cooperate on reinsurance opportunities and pursue joint strategic investments. Tokio Marine characterized the arrangement as establishing 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% over the trailing 52-week period, with an aggregate market capitalization exceeding $44 billion.
Mitsubishi reached an all-time closing high on Friday.
