Key Highlights
- Both BRK.A and BRK.B shares have declined through eight consecutive trading days — the most extended losing stretch since late 2018
- Class A shares dropped 4.7% while Class B shares fell 4.9% from their March 17 closing highs
- Fourth-quarter 2025 operating profit declined approximately 30% compared to the prior year, reaching $10.2 billion; insurance underwriting results plunged 54%
- CEO Greg Abel reactivated the buyback program on March 4 and disclosed a personal $15.3 million stock purchase
- The conglomerate deployed $1.8 billion to acquire roughly 2.5% of Tokio Marine Holdings, with shares jumping 24% following the announcement
Berkshire Hathaway’s stock has experienced an uninterrupted decline across eight consecutive trading days — representing the most prolonged downturn the shares have endured since late December 2018. Since posting their most recent positive close on March 17, Class A shares have retreated 4.7% while Class B shares have slipped 4.9%.
Berkshire Hathaway Inc., BRK-B
The overall equity market has added to the pressure. The S&P 500 index has declined 5.2% during the identical period and sits approximately 7% lower year-to-date, marking its fifth consecutive weekly decline. Escalating energy costs and geopolitical tensions stemming from the Iran situation continue to suppress investor confidence.
The downturn comes at a particularly delicate moment for Berkshire. Greg Abel formally assumed the chief executive position at the beginning of 2026, while Warren Buffett continues in his role as chairman. Shares have now retreated more than 13% since Buffett’s announcement last year regarding his decision to relinquish the CEO position.
The company’s recent financial performance added to investor concerns. Fourth-quarter 2025 operating profit totaled $10.2 billion, representing a decline of roughly 30% compared to the same period one year earlier. Full-year operating profit reached $44.5 billion, down 6% from 2024 levels.
Insurance underwriting operations bore the brunt of the weakness, contracting 54% year-over-year during Q4 to reach $1.56 billion. While this comparison faced a challenging baseline from an exceptionally robust prior-year quarter, the results nevertheless rattled investors when disclosed on February 28.
BNSF, Berkshire’s railway subsidiary, continues grappling with compressed margins due to persistently high diesel fuel expenses. The organization’s consumer-focused and manufacturing operations also face headwinds from elevated energy prices that constrain discretionary spending.
Abel Takes Action Early
Notwithstanding the recent share price weakness, Abel has wasted no time establishing his capital deployment priorities. Berkshire reinitiated its share repurchase program on March 4 — marking the first buyback activity since May 2024. In a CNBC interview, Abel explained that the company repurchases shares when they trade beneath intrinsic value, signaling his view that current valuations present an attractive entry point.
He additionally revealed a personal $15.3 million investment in Berkshire shares and pledged to channel his complete after-tax compensation into company stock throughout his tenure as chief executive.
Berkshire closed 2025 holding $373.3 billion across cash, cash equivalents, and Treasury securities, modestly below the Q3 peak of $381.6 billion but remaining among the most substantial cash reserves maintained by any corporation worldwide.
Strategic Investment in Tokio Marine
In a concurrent development this week, Berkshire’s insurance subsidiary National Indemnity deployed $1.8 billion to secure slightly below 2.5% ownership in Tokio Marine Holdings — Japan’s most established insurance enterprise.
Tokio Marine shares rocketed more than 24% in the wake of Monday’s disclosure. The position currently carries a market value approaching $2.3 billion.
Berkshire retains the flexibility to expand its ownership to just below 10% through open-market transactions. Any position exceeding that threshold necessitates board authorization.
The transaction was managed by Ajit Jain and reportedly included Buffett in an advisory function. Tokio Marine issued fresh shares to facilitate the acquisition and intends to repurchase an equivalent quantity to maintain shareholder equity.
The two organizations will coordinate on reinsurance opportunities and jointly evaluate strategic investment prospects. Tokio Marine characterized the arrangement as a “long-term strategic relationship.”
Berkshire’s current portfolio of five Japanese trading house investments — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — have appreciated between 42% and 124% during the trailing 52-week period, commanding a collective market capitalization exceeding $44 billion.
Mitsubishi achieved an all-time closing record on Friday.
