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Berkshire Hathaway Shares Fall After Earnings Miss as Abel Signals Patience

Investor sentiment soured on weak insurance earnings plus a pledge to prioritize patience over payouts.

Overview

  • Class A and B shares fell as much as roughly 5% Monday after fourth-quarter operating earnings dropped about 30% year over year to $10.2 billion.
  • Insurance results drove the shortfall, with underwriting profit sliding 54% to $1.56 billion, and Greg Abel warning of customer-retention pressure at Geico and broader pricing headwinds.
  • Berkshire finished 2025 with about $373 billion in cash and Treasuries, and Abel offered no indication of a dividend or near-term resumption of buybacks after a 1.5-year pause.
  • Regulatory filings through Dec. 31 show 13 straight quarters of net stock selling and a roughly 75% reduction of the Apple stake, while Berkshire added 368,055 shares to its Domino’s position.
  • Warren Buffett stepped down as CEO on Dec. 31, 2025 and remains chairman, as Abel’s first shareholder letter emphasized continuity, decentralized operations, and disciplined capital deployment.