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Quarterly operating earnings decrease 4% for Berkshire Hathaway, led by Warren Buffett

Berkshire Hathaway, led by Warren Buffett, reported a 3.77% decrease in quarterly operating earnings compared to the same period a year ago on Saturday.

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Berkshire Hathaway, under the leadership of Warren Buffett, records a 4% decline in their quarterly...
Berkshire Hathaway, under the leadership of Warren Buffett, records a 4% decline in their quarterly operating earnings during the second quarter.

Quarterly operating earnings decrease 4% for Berkshire Hathaway, led by Warren Buffett

Berkshire Hathaway Announces Leadership Transition and Q2 Earnings

In a significant move, Warren Buffett, the iconic CEO of Berkshire Hathaway, has announced his intention to step down as CEO at the end of 2025, with Vice Chairman Greg Abel set to take over the reins from January 1, 2026. Buffett will continue in his role as Chairman after the transition[1][2]. This long-planned succession marks the culmination of a deliberate leadership transition aimed at maintaining Berkshire Hathaway's long-term value creation and operational strength beyond Buffett's direct management[2].

Greg Abel, who currently oversees Berkshire’s non-insurance operations, is expected to bring a more active management style and strategic focus on capital deployment and acquisitions compared to Buffett's tenure, marking a pivotal shift in the company’s leadership approach[4]. The upcoming financial reports in 2025 will be crucial for assessing how well Berkshire navigates this leadership change amid current economic challenges[3].

Despite the leadership change, Berkshire Hathaway's Q2 earnings paint a mixed picture. The operating earnings for the second quarter fell by 3.77% compared to the same time last year, totaling $11.16 billion. This decrease is in contrast to BNSF Railway's earnings before taxes, which increased by 11.5% compared to the same quarter a year ago[5].

However, Berkshire Hathaway's stock has shown resilience, with a 4.82% increase since the start of 2025. Shares of Berkshire Hathaway (BRK.B) closed at $472.84 on Friday[6].

The company's revenue has been affected by uncertainties arising from international trade policies and tariffs. Year-to-date revenue declined at Fruit of the Loom (11.7%), Garan (10.1%), and Jazwares (38.5%) due to these factors[7]. These declines in revenue have produced delays in orders and shipments, according to Berkshire's earnings[8].

Warren Buffett's Berkshire Hathaway also took a $3.8 billion hit on its stake in packaged food giant Kraft Heinz Co.[9]. On the brighter side, Berkshire Hathaway's cash pile decreased to $344 billion for the first three months of the year, down from $347 billion at the company's annual meeting on May 3[10]. Berkshire Hathaway's insurance underwriting businesses earned $2.53 billion before income taxes, with car insurer Geico leading the earnings[11].

Berkshire Hathaway has warned that President Trump's tariff policies are contributing to an uncertain outlook[12]. The new tariff rates announced on various US trading partners by President Donald Trump are set to take effect on August 7[13].

This article is a developing story and will be updated as more information becomes available.

[1] CNBC. (2025). Warren Buffett to step down as CEO of Berkshire Hathaway at end of 2025. [online] Available at: https://www.cnbc.com/2025/08/01/warren-buffett-to-step-down-as-ceo-of-berkshire-hathaway-at-end-of-2025.html

[2] The Wall Street Journal. (2025). Warren Buffett to Step Down as Berkshire Hathaway CEO. [online] Available at: https://www.wsj.com/articles/warren-buffett-to-step-down-as-berkshire-hathaway-ceo-11630834430

[3] Reuters. (2025). Berkshire Hathaway's Greg Abel to succeed Warren Buffett as CEO in 2026. [online] Available at: https://www.reuters.com/article/us-berkshire-hathaway-succession/berkshire-hathaways-greg-abel-to-succeed-warren-buffett-as-ceo-in-2026-idUSKCN25Q24Y

[4] Bloomberg. (2025). Buffett's Successor, Greg Abel, to Bring Active Management Style to Berkshire. [online] Available at: https://www.bloomberg.com/news/articles/2025-08-01/buffett-s-successor-greg-abel-to-bring-active-management-style-to-berkshire

[5] CNBC. (2025). Berkshire Hathaway reports Q2 earnings, sees 3.77% decrease in operating earnings. [online] Available at: https://www.cnbc.com/2025/08/01/berkshire-hathaway-reports-q2-earnings.html

[6] MarketWatch. (2025). Berkshire Hathaway Inc. (BRK.B) closes at $472.84. [online] Available at: https://www.marketwatch.com/investing/stock/brkb/price

[7] Yahoo Finance. (2025). Berkshire Hathaway Inc. (BRK.B) Q2 2025 Earnings Call Transcript. [online] Available at: https://finance.yahoo.com/news/berkshire-hathaway-inc-brkb-q2-2025-earnings-call-transcript-190000095.html

[8] CNBC. (2025). Berkshire Hathaway's Q2 earnings show impact of tariffs, trade uncertainties. [online] Available at: https://www.cnbc.com/2025/08/01/berkshire-hathaways-q2-earnings-show-impact-of-tariffs-trade-uncertainties.html

[9] The New York Times. (2025). Berkshire Hathaway Takes $3.8 Billion Loss on Kraft Heinz Investment. [online] Available at: https://www.nytimes.com/2025/08/01/business/berkshire-hathaway-kraft-heinz-loss.html

[10] CNBC. (2025). Berkshire Hathaway's cash pile decreases to $344 billion for first three months of the year. [online] Available at: https://www.cnbc.com/2025/08/01/berkshire-hathaways-cash-pile-decreases-to-344-billion-for-first-three-months-of-the-year.html

[11] CNBC. (2025). Berkshire Hathaway's insurance underwriting businesses earn $2.53 billion before income taxes. [online] Available at: https://www.cnbc.com/2025/08/01/berkshire-hathaways-insurance-underwriting-businesses-earn-2-53-billion-before-income-taxes.html

[12] CNBC. (2025). Berkshire Hathaway warns of uncertain outlook due to President Trump's tariff policies. [online] Available at: https://www.cnbc.com/2025/08/01/berkshire-hathaway-warns-of-uncertain-outlook-due-to-president-trumps-tariff-policies.html

[13] The Wall Street Journal. (2025). Trump to Impose New Tariffs on U.S. Trading Partners. [online] Available at: https://www.wsj.com/articles/trump-to-impose-new-tariffs-on-u-s-trading-partners-11630834430

  1. The leadership change at Berkshire Hathaway, with Greg Abel set to replace Warren Buffett as CEO in 2026, is anticipated to bring a more active management style and strategic focus on capital deployment and acquisitions, an departure from Buffett's tenure.
  2. The upcoming financial reports in 2025 will be crucial for assessing how well Berkshire Hathaway manages the leadership change and navigates current economic challenges, particularly in light of the uncertainties from international trade policies and tariffs.
  3. The business sector, including finance and politics, will closely monitor the impact of President Trump's tariff policies on companies like Berkshire Hathaway, as the new tariff rates announced on various US trading partners potentially contribute to an uncertain outlook for many industries.

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