Berkshire Hathaway, led by Warren Buffett, reported a 4% year-over-year decline in second-quarter operating earnings to $11.16 billion. The conglomerate warned that President Donald Trump’s tariffs could impact its businesses.
The decline was mainly due to a decrease in insurance underwriting, while railroad, energy, manufacturing, service, and retailing saw higher profits compared to the same period last year. Berkshire issued a stern warning about the potential negative effects of tariffs on its operations and investments.
Buffett’s cash reserve stood near a record high at $344.1 billion but was slightly lower than the previous quarter. The conglomerate sold $4.5 billion in stocks for the 11th consecutive quarter, with shares declining over 10% from their record high.
Berkshire also wrote down a loss of $3.8 billion due to its underperforming Kraft Heinz stake, which has been exploring a spinoff of its grocery business. The conglomerate’s CEO succession plan is set to be put into action after Buffett steps down at the end of 2025, with Greg Abel taking over as CEO and remaining as chairman of Berkshire’s board.
Source: https://www.cnbc.com/2025/08/02/berkshire-hathaway-brk-earnings-q2-2025.html