Warren Buffett’s Berkshire Hathaway reported a 3.79% decrease in operating earnings for the second quarter, compared to the same period last year. The company earned $11.16 billion in the second quarter, down from $11.6 billion a year ago.
Net income fell to $12.37 billion, a decline of 59% from the same quarter last year. Berkshire’s insurance underwriting businesses saw a drop of nearly 11% to $2.53 billion before taxes, compared to $2.84 billion in the same period last year.
The company also reported a decrease in cash reserves, dropping to $344 billion between May and July, down from $347 billion at its annual meeting on May 3. Berkshire revealed a $3.8 billion loss on its stake in Kraft Heinz Co., which was announced as part of Buffett’s plan to step down as CEO later this year.
Berkshire warned that President Donald Trump’s tariff policies are contributing to an uncertain outlook, stating that it is unable to predict the nature and timing of potential economic consequences.
However, not all sectors performed poorly. Berkshire’s energy and railroad companies reported earnings increases, with BNSF Railway’s earnings before taxes up 11.5% and BHE net income climbing 18%.
The stock price of Berkshire Hathaway closed at $472.84 on Friday, up 4.82% since the start of 2025.
Source: https://edition.cnn.com/2025/08/02/business/berkshire-hathaway-earnings-warren-buffett