In 1965, legendary investor Warren Buffett took management of Berkshire Hathaway, a struggling textile maker. He then turned it into an funding conglomerate and one of the intently watched corporations on this planet.
In Could 2025, Buffett introduced plans to step down as chief government, beginning in 2026. He handed the function to longtime lieutenant Greg Abel.
On Feb. 28, Abel posted his first shareholder letter as CEO, together with Berkshire Hathaway’s This autumn earnings report and full-year 2025 outcomes.
The 63-year-old paid tribute to Buffett whereas vowing that Berkshire Hathaway won’t pull again on investing or change its longstanding technique.
“We maintain a fortress-like balance sheet, ensuring Berkshire’s foundation is never compromised,” Abel wrote. “We preserve this financial strength by using debt sparingly and prudently. Our substantial liquidity enables us to meet our obligations even under the most adverse conditions and to respond swiftly when opportunities arise.”
Buffett will proceed to play a key function. After stepping off, he’ll nonetheless function Berkshire’s chairman, “in the office five days a week and available to us as we underwrite insurance, operate our non-insurance businesses and deploy capital including equity investments,” Abel mentioned.
“We maintain a fortress-like balance sheet, ensuring Berkshire’s foundation is never compromised,” Berkshire Hathaway CEO Greg Abel wrote.
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Money is Berkshire Hathaway’s “dry powder”
In 2025, Berkshire Hathaway’s Class A shares (BRK.A) rose 10.85% and Class B (BRK.B) shares gained 10.89%, trailing the S&P 500’s 16.39% return for the yr.
As of Feb. 27, the Class A shares are up 0.29% and B shares are up 0.46% yr to this point, in contrast with the S&P 500’s 0.49% achieve.
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Nonetheless, Berkshire follows a worth investing path and at all times tells traders to pay little consideration to its short-term efficiency.
Berkshire stays financially robust, with its money and U.S. Treasury holdings standing at $373.3 billion, down barely from the third quarter’s $382 billion.
“While some of this capital is required to support our insurance operations and protect Berkshire against extreme scenarios, it also constitutes our dry powder,” Abel wrote.
Berkshire Hathaway’s earnings decline in Q4
Berkshire Hathaway on Feb. 28 reported a major decline in its operating earnings, partly due to weakness in its insurance business.
Earnings from operations were $10.2 billion in Q4, down more than 29% from $14.56 billion a year ago. For full-year 2025, Berkshire delivered operating earnings of $44.5 billion, below 2024’s $47.4 billion but above the $37.5 billion average over the past five years.
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Berkshire earned $7.2 billion from insurance underwriting last year, a 19.5% drop from 2024.
Abel said Berkshire’s insurance businesses in 2025 began to experience a deceleration or reversal of its past strengths, particularly in the latter half of the year.
“This probably means we’ll write much less property and casualty enterprise for a time period,” he wrote.
Berkshire Hathaway sold Apple and Amazon
Berkshire Hathaway’s holdings span tech, finance, consumer staples, consumer discretionary, energy, communication services, and health care. The portfolio is concentrated in a small number of companies, which Berkshire believes could “compound over decades.”
The fourth quarter of 2025 was the final quarter under Buffett as CEO. In this quarter, Berkshire again reduced its biggest holding, Apple (AAPL), by 10.3 million shares, leaving about 228 million shares worth $62 billion at the quarter’s end, according to Whalewisdom’s data based on 13F filings.
Berkshire Hathaway’s top 10 holdings as of Dec. 31, 2025:
- Apple (AAPL) — 22.60%
- American Express (AXP) — 20.46%
- Bank of America (BAC) — 10.38%
- Coca-Cola (KO) — 10.20%
- Chevron (CVX) — 7.24%
- Moody’s (MCO) — 4.60%
- Occidental Petroleum (OXY) — 3.97%
- Chubb (CB) — 3.90%
- Kraft Heinz (KHC) — 2.88%
- Alphabet (GOOGL) — 2.04%
It reduced 7.7 million shares of Amazon (AMZN), down 77.24% from the previous quarter. Amazon now accounts for 0.19% of the portfolio.
Berkshire also sold 50.7 million shares of Bank of America, which remains its third-largest holding after the sale.
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Smaller trims included DaVita, Constellation Brands, and Aon, with DaVita down 401,514 shares, Constellation down 400,000 shares, and Aon down 497,005 shares.
On the buy side, Berkshire purchased 8 million shares of Chevron (CVX), increasing its stake by 6.63%. Chevron is Berkshire’s fifth holding.
It also added to insurance provider Chubb (CB), buying 2.9 million shares, a 9.31% increase. Domino’s Pizza (DPZ) was another add, up 368,055 shares or 12.34%.
“This concentrated method will proceed, with restricted exercise in these holdings, although we could considerably modify a holding if we see basic modifications in its longterm financial prospects,” Abel wrote.
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