Berkshire shares dip after earnings decline, lack of buybacks disappoint investors

## Berkshire Hathaway’s Earnings Dip: What Investors Need to Know

Here’s a quick rundown of the latest news from Warren Buffett’s Berkshire Hathaway:

  • Operating Earnings Down: Berkshire Hathaway’s operating earnings decreased by 4% in the second quarter, reaching $11.16 billion. This was primarily due to a decline in insurance underwriting profits.
  • Stock Performance: Both Class A and B shares experienced a roughly 1% drop in premarket trading following the earnings report. The stock is down about 12% from its peak in early May.
  • Kraft Heinz Write-Down: Berkshire recorded a $3.8 billion loss on its Kraft Heinz stake, reflecting the underperformance of the investment. This comes as Kraft Heinz considers spinning off its grocery business.
  • Cash Hoard Remains High: Buffett’s cash reserves are still near a record high, at $344.1 billion.
  • Stock Selling Continues: Berkshire continued its trend of selling stocks, offloading $4.5 billion in equities in the first half of 2025.
  • No Share Repurchases: The company did not repurchase any shares in the first half of 2025, even as the stock price corrected.
  • Analyst Perspective: Analysts are hoping for increased investment activity, a large acquisition, and share repurchases to boost the stock.

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Source: https://www.cnbc.com/2025/08/04/berkshire-shares-dip-after-earnings-decline-lack-of-buybacks-disappoint-investors-.html

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