Warren Buffett will speak at the Berkshire Hathaway Annual Shareholders Meeting held in Omaha, Nebraska on May 3, 2025.
CNBC
Berkshire Hathaway shares fell after Warren Buffett’s conglomerate reported a slight decline in operating profits, continuing to fuss about stock sales and halt buybacks.
The Omaha-based giant fell operating profit, including from its insurance and rail business, to $11.16 billion in the second quarter, down 4% year-on-year. Railroads, energy, manufacturing, services and retailers all reported higher profits for a year ago, but a decline in insurance underwriting reduced the overall outcome.
Berkshire’s Class A and B stocks fell about 1% in pre-market trading on Monday following the results. Stocks fell about 12% from an all-time high in early May before 94-year-old Buffett announced that Greg Abel would take over as CEO at the end of 2025.
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Berkshire Hathaway Class 1st Year
The move that surprised many was a big write-up for Berkshire’s underperforming Kraft Heinz Stake. For the first time, the conglomerate recorded a loss of $3.8 billion from Kraftheinz 27%. The move comes when reports emerged that the consumer goods giant is focusing on spin-offs of its grocery business. The two Berkshire executives resigned from the board of Kraft Heinz in May.
“We are pleased to announce that Billstone, a CIO of Glenview Trust Company and Berkshire shareholder,” said: “Buffett has long admitted that he has paid too much to Kraftheinz, particularly in light of increasing competition in the brand food category.”
Buffett’s $344.1 billion cash storage remained near record highs. Berkshire has been a net seller of stock for consecutive quarter, dumping $4.5 billion in shares in the first six months of 2025.
The conglomerate also did not buy back the shares until the first half of 2025 and July 21st, even if the shares were subject to substantial revisions.
“We believe Abel will build credibility with investors over time, but we believe BRK’s short-term catalysts could increase investing activity, potentially large-scale acquisitions and potential buybacks,” Edward Jones analyst Kyle Sanders said in a memo. “None of the quarter happened, but I think it’s a bit disappointing.”
