As Warren Buffett prepares to step down as CEO of Berkshire Hathaway by the end of 2025, investors are closely monitoring the company’s stock performance and its trajectory under new leadership. With Berkshire Hathaway stock up 17.3% year-to-date as of April 2025, despite broader market declines, the company remains a symbol of stability and growth. This article explores key developments, including Buffett’s retirement announcement, the company’s first-quarter 2025 earnings, expectations for the second-quarter report, and the impact of Buffett’s philanthropy on Berkshire Hathaway stock.
Buffett’s Retirement and Succession Plan
On May 3, 2025, at Berkshire Hathaway’s annual shareholder meeting in Omaha, Nebraska, Warren Buffett, aged 94, announced his intention to retire as CEO by the end of 2025. He will remain chairman, with his son Howard Buffett set to assume that role upon his death. Gregory Abel, 62, chairman of Berkshire Hathaway Energy, will succeed Buffett as CEO. Abel has been a key figure in the company, overseeing its energy operations and earning Buffett’s confidence as a capable leader. The announcement was met with a minute-long standing ovation, reflecting shareholders’ trust in Buffett’s legacy and the planned transition.
Buffett’s tenure, spanning over six decades, transformed Berkshire Hathaway from a struggling textile manufacturer into a $1.2 trillion conglomerate. His investment philosophy—acquiring “wonderful businesses at fair prices”—has built a diverse portfolio, including Geico, BNSF Railroad, Dairy Queen, and significant stakes in companies like Apple. Under his leadership, Berkshire Hathaway stock delivered an extraordinary 5,502,284% gain since 1965, dwarfing the S&P 500’s 39,054% return over the same period. Abel’s challenge will be to maintain this track record, particularly in capital allocation, a role Buffett emphasized Abel will fully assume.
First-Quarter 2025 Earnings: Challenges and Strengths
Berkshire Hathaway’s first-quarter 2025 earnings, released on May 3, 2025, provided a mixed picture. Operating earnings, which Buffett considers the best measure of the company’s performance, fell 14% to $9.64 billion from $11.22 billion in Q1 2024. Per-share operating earnings dropped to $4.47, missing analyst estimates of $4.89 (UBS) and $4.72 (FactSet). The decline was largely driven by a 48.6% drop in insurance-underwriting profit to $1.34 billion, exacerbated by a $1.1 billion loss from Southern California wildfires. A $713 million foreign exchange loss, compared to a $597 million gain in Q1 2024, also weighed on results, reflecting a 4.6% decline in the U.S. dollar against the Japanese yen.
Despite these challenges, Berkshire Hathaway showcased financial resilience. The company’s cash reserves grew to over $347 billion, up from approximately $334 billion at the end of 2024, providing significant flexibility for investments or acquisitions. Book value per share, a proxy for intrinsic value, rose 0.8% sequentially and 14.4% year-over-year to $455,055. Overall earnings, including unrealized investment losses, fell nearly 64% year-over-year, but Buffett has long advised investors to focus on operating earnings, as GAAP figures can be distorted by market fluctuations.
The earnings report also highlighted external pressures, including tariffs and geopolitical risks, which have created uncertainty for Berkshire’s operations. The company noted difficulties in predicting the impact on product costs, supply chains, and customer demand, particularly for its manufacturing and retail businesses.
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Operating Earnings | $9.64 billion | $11.22 billion | -14% |
| Per-Share Operating Earnings | $4.47 | $5.20 | -14% |
| Insurance-Underwriting Profit | $1.34 billion | $2.60 billion | -48.6% |
| Cash Reserves | $347 billion | $334 billion | +3.9% |
| Book Value Per Share | $455,055 | $397,627 | +14.4% (year-over-year) |
Stock Performance: A Beacon of Stability
Berkshire Hathaway stock has been a standout performer in 2025, gaining 17.3% year-to-date as of April 24, 2025, while the S&P 500 fell 3.3%. This resilience stems from several factors. Unlike many market indices, Berkshire’s equity portfolio avoids heavy exposure to volatile sectors like technology, which have been pressured by tariff-related uncertainty. Its largest holding, Apple, remains significant, but Buffett has been trimming this position, diversifying risk. Additionally, Berkshire’s diverse operations—spanning insurance, railroads, energy, and consumer goods—provide a buffer against market swings. The company’s record cash hoard further enhances its ability to seize opportunities or navigate downturns.
Morningstar analysts attribute Berkshire’s strong performance to its emphasis on lower-risk business lines, such as insurance and consumer staples, and its substantial cash reserves. However, they note that the stock trades at a 9% premium to their fair value estimate, suggesting it may be modestly overvalued. Despite this, Berkshire Hathaway stock remains a compelling option for investors seeking stability in a turbulent market.
Second-Quarter 2025 Expectations
As the second quarter of 2025 ended on June 30, 2025, investors await Berkshire Hathaway’s earnings report, typically released a few weeks later. While specific results are not yet available, first-quarter trends offer some clues. The 14% drop in operating earnings was partly due to one-time factors, such as wildfire losses and foreign exchange headwinds. If these pressures subside, operating earnings could stabilize or improve. However, ongoing tariff and geopolitical risks remain a concern, particularly for Berkshire’s manufacturing and retail segments.
Analysts are also watching for signs of how Berkshire is preparing for the leadership transition. Although Abel will not officially become CEO until year-end, his influence on operations and capital allocation may already be growing. Buffett has emphasized that Abel will have full responsibility for investment decisions, a critical driver of Berkshire’s success. The second-quarter report may provide insights into whether the company is maintaining its disciplined approach to capital deployment.
Buffett’s Philanthropy: A Legacy of Giving
Warren Buffett’s commitment to philanthropy is a cornerstone of his legacy. Since pledging in 2006 to give away 99% of his wealth, Buffett has donated over $60 billion in Berkshire Hathaway stock to charities, primarily the Bill & Melinda Gates Foundation and foundations run by his children. In 2024, he donated $5.3 billion, his largest annual gift to date, including 9.93 million Class B shares to the Gates Foundation and smaller amounts to family charities. No specific donation has been announced for 2025, but Buffett’s pattern of giving suggests another significant contribution is likely later this year.
These donations have minimal direct impact on Berkshire Hathaway stock, as they represent a small fraction of the company’s outstanding shares. For example, the 13 million Class B shares donated in 2024 were a tiny portion of Berkshire’s total share count. However, Buffett’s philanthropy reinforces the company’s culture of long-term value creation and social responsibility, which may influence its reputation and investor sentiment under Abel’s leadership.visit : true
Conclusion
Berkshire Hathaway stands at a crossroads as Warren Buffett prepares to hand over the CEO role to Gregory Abel. The company’s first-quarter 2025 earnings revealed challenges but also underscored its financial strength, with record cash reserves and a robust stock performance. As investors await the second-quarter report, Berkshire’s diverse portfolio and strategic positioning suggest it is well-equipped to navigate market uncertainties.
For those considering Berkshire Hathaway stock, the company offers exposure to a wide range of industries and a proven track record of long-term growth. While Buffett’s retirement marks the end of an era, his legacy of disciplined investing and operational excellence will continue to guide Berkshire into its next chapter. Investors should monitor the upcoming earnings report and leadership transition for further insights into the company’s future.
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FAQs
What is the current stock price of Berkshire Hathaway (BRK-A)?
$728,200 as of market close on June 19, 2025.
How has Berkshire Hathaway’s stock performed today?
Gained 0.39% from previous close of $725,400, with a trading range of $724,298 to $729,509.
What are Berkshire Hathaway’s latest earnings and revenue figures?
Operating earnings $9.64 billion (down 14% YoY), revenue $83.3 billion (down 9.2% YoY).
How does Berkshire Hathaway’s market cap compare to other giants?
$1.05 trillion, ranking 5th in 2025 Fortune 500 by revenue, behind Walmart, Amazon, UnitedHealth, and ExxonMobil.
When is the next earnings announcement for Berkshire Hathaway?
Expected August 4, 2025.