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Abel’s First Berkshire Letter Vows Continuity as Operating Earnings Fall and $4.5 Billion Write-Downs Land

He assumes responsibility for Berkshire’s equity portfolio.

Overview

  • Berkshire reported fourth-quarter operating earnings of $10.2 billion, down nearly 30% year over year, as insurance underwriting profit fell 54% to $1.56 billion and insurance investment income declined to about $3.1 billion.
  • The company booked roughly $4.5 billion of write-downs tied to Kraft Heinz and Occidental Petroleum, and a January filing said it may sell some or all of its 325 million Kraft Heinz shares.
  • Cash and Treasury holdings ended 2025 at about $373.1–$373.3 billion, Berkshire repurchased no stock for a sixth straight quarter, and Abel reaffirmed the company’s resistance to paying a dividend.
  • Abel pledged to preserve Berkshire’s decentralized model and “fortress-like” balance sheet, calling the large cash position strategic dry powder for disciplined deployment.
  • Ted Weschler will manage about 6% of the stock portfolio, the annual meeting’s Q&A will be led by Abel in panel format, and Warren Buffett remains chairman and continues to work from the office.