Group 1 - Berkshire Hathaway Inc. reported disappointing Q2 earnings, with operating profit declining 3.8% year-over-year [1] - Management provided a cautious forecast, attributing concerns to global trade conditions and geopolitical instability [1]

Core Viewpoint - Berkshire Hathaway's stock price has experienced a significant drop due to investment losses in Kraft Heinz and the suspension of share buybacks [1][5]. Group 1: Investment Actions - Notable investor Duan Yongping has sold put options on Berkshire Hathaway, indicating that he believes the current price is attractive for buying [2][4]. - Duan Yongping has a history of using the strategy of selling put options to build positions and capitalize on market dips, as seen in his previous actions with companies like Nvidia and Apple [2][4]. Group 2: Financial Performance - Berkshire Hathaway reported second-quarter revenue of $92.515 billion, exceeding market expectations, but net profit fell to $12.37 billion, a 59% year-over-year decline [5]. - The investment income for the quarter was $4.97 billion, down over 73% compared to the previous year [5][6]. - The company confirmed a $3.8 billion impairment loss on its investment in Kraft Heinz, marking it as one of Buffett's few investment missteps [6]. Group 3: Market Reaction - Despite the solid operational performance of its subsidiaries, the market reacted negatively to Berkshire's financial results, leading to a 2.65% drop in its A-shares [6]. - Since the leadership transition in May, Berkshire's A-shares have declined over 13%, contrasting with an 11% rise in the S&P 500 during the same period [6][7]. Group 4: Investor Sentiment - Analysts suggest that the weak stock performance reflects investor concerns about the diminishing "Buffett premium" and uncertainty regarding the company's future without Warren Buffett [7]. - Duan Yongping emphasizes the value of Berkshire's corporate culture and its extensive business empire, which he believes will continue to thrive [7][8].

Part I – Financial Information [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Presents Berkshire Hathaway Inc.'s unaudited consolidated financial statements as of June 30, 2025, with notes on accounting policies and key financial data Consolidated Balance Sheet Summary (As of June 30, 2025) | Metric | Amount (in millions) | | :--- | :--- | | **Total Assets** | **$1,163,968** | | Cash, cash equivalents, and U.S. Treasury Bills | $339,798 | | Investments in equity securities | $267,923 | | **Total Liabilities** | **$493,692** | | Insurance unpaid losses & loss adjustment expenses | $150,521 | | Notes payable and other borrowings | $127,020 | | **Total Shareholders' Equity** | **$670,276** | Consolidated Earnings Summary (First Six Months 2025 vs 2024) | Metric | First Six Months 2025 (in millions) | First Six Months 2024 (in millions) | | :--- | :--- | :--- | | **Total Revenues** | **$182,240** | **$183,522** | | Investment Gains (Losses) | ($71) | $25,733 | | **Net Earnings Attributable to Berkshire Shareholders** | **$16,973** | **$43,050** | | Net Earnings per Average Equivalent Class A Share | $11,801 | $29,936 | - Net cash flows from operating activities were **$21.0 billion** for the first six months of 2025, a decrease from **$24.2 billion** in the same period of 2024, while investing activities shifted to a positive **$33.0 billion** from a negative **$10.7 billion**[20](index=20&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail financial statement preparation, accounting policies, and key financial items, including a **$5.0 billion** Kraft Heinz impairment and major legal updates - In Q2 2025, the company recorded a pre-tax impairment loss of approximately **$5.0 billion** on its investment in The Kraft Heinz Company, reducing its carrying value to fair value[47](index=47&type=chunk) - As of June 30, 2025, the five largest equity holdings represented **67%** of the total equity portfolio fair value[36](index=36&type=chunk) - PacifiCorp has recorded cumulative estimated probable losses of approximately **$2.75 billion** related to the 2020 and 2022 Wildfires, with **$1.37 billion** paid in settlements through June 30, 2025[140](index=140&type=chunk)[141](index=141&type=chunk) - HomeServices reached a nationwide class settlement agreement in April 2024 regarding antitrust litigation, agreeing to payments aggregating **$250 million** over four years[144](index=144&type=chunk) - There were no share repurchases during the first six months of 2025, but the repurchase program remains active, contingent on consolidated cash holdings remaining above **$30 billion**[113](index=113&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and first six months 2025 results, highlighting mixed operating earnings, a strong financial condition with **$668 billion** equity, and investment volatility Net Earnings Attributable to Berkshire Shareholders (After-Tax, in millions) | Category | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Insurance – underwriting | $1,992 | $2,263 | $3,328 | $4,861 | | Insurance – investment income | $3,367 | $3,320 | $6,260 | $5,918 | | BNSF | $1,466 | $1,227 | $2,680 | $2,370 | | Berkshire Hathaway Energy | $702 | $655 | $1,799 | $1,372 | | Manufacturing, service and retailing | $3,601 | $3,380 | $6,661 | $6,468 | | Investment gains (losses) | $4,970 | $18,750 | ($68) | $20,230 | | Other-than-temporary impairment (Kraft Heinz) | ($3,760) | $— | ($3,760) | $— | | **Total Net Earnings** | **$12,370** | **$30,348** | **$16,973** | **$43,050** | - Management emphasizes that investment gains and losses are generally **meaningless** in understanding periodic results or evaluating economic performance and will continue to cause **significant volatility** in periodic earnings[169](index=169&type=chunk)[262](index=262&type=chunk) - The company's financial condition remains robust, with shareholders' equity at **$668 billion** as of June 30, 2025, an increase of **$18.6 billion** since year-end 2024, and **$339.8 billion** in cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses[270](index=270&type=chunk)[272](index=272&type=chunk) [Insurance Operations](index=33&type=section&id=Insurance%20Operations) Underwriting earnings decreased by **$1.5 billion** due to wildfire losses, while GEICO performed strongly and insurance float increased to **$174 billion** - Net underwriting earnings for the first six months of 2025 were **$3.3 billion**, down from **$4.9 billion** in 2024, largely due to approximately **$850 million** in after-tax losses from Southern California wildfires[166](index=166&type=chunk)[174](index=174&type=chunk) - GEICO's pre-tax underwriting earnings for the first six months of 2025 were **$4.0 billion**, up from **$3.7 billion** in 2024, benefiting from higher average premiums and a **2.9 percentage point** decrease in the loss ratio[176](index=176&type=chunk)[177](index=177&type=chunk) - BH Primary experienced a pre-tax underwriting loss of **$81 million** in the first six months of 2025, a sharp reversal from a **$765 million** gain in 2024, driven by approximately **$300 million** in wildfire losses and a **$401 million** increase in estimated ultimate losses for prior years' claims[181](index=181&type=chunk)[183](index=183&type=chunk) - Insurance float was approximately **$174 billion** at June 30, 2025, an increase of **$3 billion** since December 31, 2024[202](index=202&type=chunk) [BNSF](index=38&type=section&id=BNSF) BNSF's net earnings increased **13.1%** to **$2.7 billion** in H1 2025, driven by lower operating expenses and a lower tax rate, despite declining average revenue per unit BNSF Earnings Summary (First Six Months) | Metric (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Railroad operating revenues | $11,402 | $11,361 | | Railroad operating expenses | $7,568 | $7,818 | | **Net earnings** | **$2,680** | **$2,370** | - Total freight volumes for the first six months of 2025 increased by **2.7%** compared to 2024, with Consumer Products up **4.5%** and Coal up **7.3%**, while Industrial Products declined **4.7%**[207](index=207&type=chunk) - Railroad operating expenses declined **3.2%** in the first six months of 2025, primarily due to a **12.4%** decrease in fuel expenses and lower costs from litigation accruals and cost management efforts[212](index=212&type=chunk) [Berkshire Hathaway Energy (BHE)](index=39&type=section&id=Berkshire%20Hathaway%20Energy%20%28BHE%29) BHE's net earnings increased **31.1%** to **$1.8 billion** in H1 2025, driven by higher U.S. utilities earnings and reduced real estate brokerage losses BHE Net Earnings Attributable to BHE (After-Tax, in millions) | Segment | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | U.S. utilities | $862 | $643 | 34.1% | | Natural gas pipelines | $671 | $733 | (8.5)% | | Other energy businesses | $650 | $661 | (1.7)% | | Real estate brokerage | $30 | ($116) | N/A | | **Total** | **$1,802** | **$1,510** | **19.3%** | - The increase in U.S. utilities earnings was supported by a **3.3%** rise in retail customer volumes and higher rates, despite ongoing wildfire-related costs from prior periods[220](index=220&type=chunk)[221](index=221&type=chunk) - Real estate brokerage earnings improved by **$146 million** year-to-date, primarily due to charges in 2024 related to litigation settlements[224](index=224&type=chunk) [Manufacturing, Service and Retailing](index=41&type=section&id=Manufacturing%2C%20Service%20and%20Retailing) Manufacturing, Service, and Retailing segments reported a **3.0%** increase in after-tax earnings for H1 2025, with mixed performance across sub-segments Manufacturing, Service and Retailing Pre-Tax Earnings (First Six Months, in millions) | Category | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Manufacturing | $5,963 | $6,043 | (1.3)% | | Service and retailing | $2,690 | $2,453 | 9.7% | | **Total** | **$8,653** | **$8,496** | **1.8%** | - Within Industrial Products, PCC's pre-tax earnings grew **38.7%** year-to-date on strong aerospace demand, while Lubrizol's earnings fell **18.7%** due to lower volumes and higher costs[233](index=233&type=chunk)[234](index=234&type=chunk) - Building Products earnings declined **7.6%** pre-tax year-to-date due to slowing customer demand and pricing pressures, with Clayton Homes' earnings falling **3.7%** from higher interest expense and credit loss provisions[239](index=239&type=chunk)[241](index=241&type=chunk) - Service group pre-tax earnings rose **12.5%** year-to-date, led by aviation services and TTI, while Pilot's revenues declined **19.5%** but pre-tax earnings increased **6.7%**[250](index=250&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risks as of June 30, 2025, compared to the prior year's annual report - As of June 30, 2025, there were no material changes in the market risks described in Berkshire's Annual Report for the year ended December 31, 2024[288](index=288&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls are effective, with no significant changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of Q2 2025, the CEO and CFO concluded that the company's disclosure controls and procedures are effective[289](index=289&type=chunk) - No significant changes were made to the company's internal control over financial reporting during the second quarter[289](index=289&type=chunk) Part II – Other Information [Item 1. Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal actions, with significant litigation details in Note 22, expecting no material financial effect - The company is involved in routine legal actions arising from the normal course of business and does not believe they will have a material effect on its financial condition[290](index=290&type=chunk) - For information on significant litigation involving Berkshire subsidiaries, the report refers to Note 22 of the Consolidated Financial Statements[291](index=291&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) Refers to significant business risks detailed in the company's Form 10-K for 2024, with no material updates - The report references Item 1A of the Form 10-K for the year ended December 31, 2024, for a description of significant business risks[292](index=292&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%20and%20Issuer%20Repurchases%20of%20Equity%20Securities) No share repurchases in Q2 2025, but the program remains active, contingent on cash holdings staying above **$30 billion** - No Class A or Class B shares were repurchased during the second quarter of 2025[293](index=293&type=chunk) - The stock repurchase program remains active, allowing for repurchases when the price is below intrinsic value, provided that cash and U.S. Treasury Bill holdings do not fall below **$30 billion**[294](index=294&type=chunk) [News Release](index=56&type=section&id=News%20Release) Summarizes Berkshire Hathaway's Q2 and H1 2025 results, emphasizing operating earnings over GAAP net earnings due to investment volatility, with insurance float at **$174 billion** Operating Earnings Summary (After-Tax, in millions) | Category | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Insurance-underwriting | $1,992 | $2,263 | $3,328 | $4,861 | | Insurance-investment income | $3,367 | $3,320 | $6,260 | $5,918 | | BNSF | $1,466 | $1,227 | $2,680 | $2,370 | | Berkshire Hathaway Energy | $702 | $655 | $1,799 | $1,372 | | Manufacturing, service and retailing | $3,601 | $3,380 | $6,661 | $6,468 | | Other | $32 | $753 | $73 | $1,831 | | **Operating earnings** | **$11,160** | **$11,598** | **$20,801** | **$22,820** | - Management emphasizes that investment gains/losses included in GAAP net earnings are often **meaningless** for analysis and can be **misleading**, and therefore presents operating earnings as a **more useful measure** of business performance[319](index=319&type=chunk)[323](index=323&type=chunk) - Insurance float was approximately **$174 billion** at June 30, 2025, an increase of **$3 billion** since the end of 2024[321](index=321&type=chunk)

Core Viewpoint - Warren Buffett will resign as the CEO of Berkshire Hathaway by the end of the year [1] Group 1 - Buffett's departure marks a significant transition for Berkshire Hathaway, a company known for its diverse investments and strong performance under his leadership [1] - The announcement has raised questions about the future direction of the company and its investment strategies post-Buffett [1] - Berkshire Hathaway's leadership transition is being closely monitored by investors and analysts, given Buffett's long-standing influence on the company's success [1]

Group 1 - The core point of the article is that as of March 31, Berkshire Hathaway's total fair value of equity investments is concentrated 69% in five companies: American Express, Apple, Bank of America, Chevron, and Coca-Cola [1]

Economic Policy - China will implement multiple measures to boost consumption, including childcare subsidies and labor wage policies, with the central bank collaborating with financial regulators to support consumption expansion [2] - The Ministry of Commerce will enhance the implementation of consumption upgrade policies, including a trial for automobile circulation reform [2] - The National Bureau of Statistics reported that in the first two months of this year, industrial value-added, service production index, retail sales, and fixed asset investment grew by 5.9%, 5.6%, 4%, and 4.1% year-on-year, respectively [2] Real Estate Market - The National Bureau of Statistics released housing price data, indicating that new home prices in first-tier cities continued to rise, while second-tier cities remained stable [2] - In February, 18 cities saw new home prices increase month-on-month, with Nanjing leading for three consecutive months [2] Stock Market - A-share indices showed mixed performance, with the Shanghai Composite Index rising by 0.19% and the Shenzhen Component Index falling by 0.19% [11] - The Hong Kong Hang Seng Index increased by 0.77%, driven by gains in public utilities, finance, and consumer stocks [11] - The stock buyback and increase loan policy has seen 400 A-share companies disclose plans for stock buybacks, with a total proposed loan amount of 803.04 billion yuan [11] Corporate Developments - BYD's stock rose by 1.15%, surpassing CATL's market value for the first time since June 2018 [12] - WuXi AppTec reported a slight decline in net profit to 9.45 billion yuan for 2024, with plans for a special dividend [12] - JD Group's delivery service has expanded to 126 cities, with over 300,000 restaurants onboard [14] International Market - U.S. stock indices closed higher, with the Dow Jones up 0.85% and the S&P 500 up 0.64% [4] - The Nasdaq China Golden Dragon Index rose by 4.03%, marking a new closing high since February 2022 [29] - Tesla announced a limited-time experience for its FSD smart driving feature in China [29] Commodity Market - International oil prices saw a slight increase, with WTI crude oil rising to $67.48 per barrel [4] - Domestic commodity futures showed a general decline, particularly in energy and agricultural products [36] Financial Sector - The central bank emphasized the need for a secure and efficient financial infrastructure and the digital transformation of finance [17] - New regulations for IPO intermediary fees have been implemented, with 13 IPO projects starting their fundraising process [18]

Core Insights - Warren Buffett's investment strategy focuses on buying good companies at attractive prices and holding them long-term to benefit from their growth [2][4][5] - The current market is perceived as overvalued, with limited opportunities for Berkshire Hathaway to make significant investments [6][8] - Buffett's approach emphasizes patience and the ability to wait for favorable market conditions to acquire stocks at reasonable valuations [12][13] Investment Strategy - Buffett's investment philosophy is influenced by Benjamin Graham's value investing principles and Philip Fisher's focus on long-term growth [4][5] - Iconic investments include Coca-Cola and American Express, which have demonstrated durable business models [2][5] - The strategy involves recognizing market emotional swings and capitalizing on them when the timing is right [9][12] Market Conditions - The Nasdaq Composite has recently entered correction territory, which Buffett likely anticipated [1] - In 2023, Buffett indicated a scarcity of attractive investment opportunities, leading to asset sales rather than purchases [6][7] - The cash balance of Berkshire Hathaway increased significantly, from approximately $168 billion at the end of 2023 to $334 billion a year later, indicating a strategy of holding cash for future investments [7] Current Actions - Buffett has sold assets in a perceived expensive market, including reducing stakes in Bank of America and Apple [7][8] - The company is currently focused on maintaining its holdings in strong companies while waiting for better buying opportunities [13][14] - Investors are advised to remain patient and not rush into the market, as opportunities will eventually arise [14]

[Form 8-K Current Report](index=1&type=section&id=Form%208-K%20Current%20Report) This Form 8-K reports Berkshire Hathaway's latest financial results and accompanying exhibits Common Stock Listing Details | Title of each class | Trading Symbols | Name of each exchange on which registered | | :--- | :--- | :--- | | Class A Common Stock | BRK.A | New York Stock Exchange | | Class B Common Stock | BRK.B | New York Stock Exchange | [Results of Operations and Financial Condition](index=2&type=section&id=ITEM%202.02%20Results%20of%20Operations%20and%20Financial%20Condition.) Berkshire Hathaway announced its fourth quarter and full year 2024 financial results via a press release furnished as an exhibit - Berkshire Hathaway announced its earnings for the fourth quarter and full year ended December 31, 2024, via a press release issued on February 22, 2025[4](index=4&type=chunk) [Financial Statements and Exhibits](index=2&type=section&id=ITEM%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits filed with the Form 8-K, including the earnings release and interactive data file - The following exhibits are furnished with this report: Exhibit 99.1: Berkshire Hathaway Inc. Earnings Release Dated February 22, 2025; Exhibit 104: Cover Page Interactive Data File[5](index=5&type=chunk)

Financial Performance - Net earnings attributable to Berkshire shareholders for 2024 were $88.995 billion, a decrease of 7.8% from $96.223 billion in 2023[277]. - Investment gains for 2024 were $41.558 billion, a decrease from $58.873 billion in 2023, reflecting significant volatility in market prices[277]. - Total revenue for 2024 was $26,348 million, a slight increase of 1.3% compared to $26,008 million in 2023[358]. - Net earnings attributable to Berkshire shareholders increased to $3,730 million in 2024, up 60.0% from $2,331 million in 2023[358]. - After-tax earnings from non-controlled businesses decreased by $231 million in 2024 compared to 2023, primarily due to lower earnings from Kraft Heinz and Pilot[435]. - Investment gains in 2024 were $52.8 billion, a decrease from $74.9 billion in 2023, while net earnings were $41.6 billion[438]. - Berkshire's shareholders' equity increased by $88.1 billion to $649.4 billion as of December 31, 2024[444]. Insurance Operations - Insurance underwriting generated after-tax earnings of $9.0 billion in 2024, up from $5.4 billion in 2023, with significant improvements at GEICO[280]. - GEICO's pre-tax underwriting earnings increased to $7.813 billion in 2024 from $3.635 billion in 2023, driven by higher average premiums and lower claims frequencies[290]. - Losses and loss adjustment expenses for GEICO decreased by $1.5 billion (4.7%) in 2024, resulting in a loss ratio of 71.8% compared to 81.0% in 2023[296]. - Estimated ultimate liabilities for losses from prior accident years were reduced by $1.7 billion in 2024, compared to $1.4 billion in 2023[316]. - The Berkshire Hathaway Reinsurance Group recorded a pre-tax charge of $490 million in 2024 related to a settlement agreement concerning non-insurance affiliates[317]. - The company anticipates claims payments in 2025 of approximately $38 billion related to claims occurring prior to 2025[455]. - A one percentage point change in BI claims severities could result in a $220 million increase or decrease in recorded liabilities, impacting pre-tax earnings correspondingly[465]. Investment Income - Net investment income for 2024 was $13.67 billion, up from $9.57 billion in 2023, reflecting a significant increase in interest and other investment income[330]. - Interest and other investment income increased by $5.5 billion in 2024 compared to 2023, primarily due to increases in U.S. Treasury Bill and short-term investment balances[331]. - Dividend income declined by $302 million (5.5%) in 2024 compared to 2023, reflecting net reductions in equity security holdings[332]. Operating Segments - BNSF's after-tax earnings declined by 1.1% in 2024 compared to 2023, impacted by labor agreement charges and ongoing litigation[281]. - Railroad operating revenues decreased by 0.5% in 2024 to $23.355 billion compared to 2023, with a net volume increase of 6.5%[340]. - Operating revenues from consumer products increased by 7.1% in 2024 to $8.4 billion, driven by a volume increase of 16.2%[343]. - Manufacturing revenues reached $77,231 million in 2024, a 2.4% increase from $75,405 million in 2023[374]. - Service and retailing revenues decreased by 3.9% to $138,672 million in 2024, down from $144,342 million in 2023[374]. Expenses and Liabilities - Losses and loss adjustment expenses rose by $1.4 billion (12.8%) in 2024, with a loss ratio increase of 2.1 percentage points compared to 2023[307]. - Underwriting expenses increased by $681 million (15.0%) in 2024, resulting in an expense ratio of 27.8%, up 1.3 percentage points from 2023[308]. - The company recorded approximately $147.6 billion in consolidated claim liabilities as of December 31, 2024, with 74% related to GEICO and the Berkshire Hathaway Reinsurance Group[460]. - The gross unpaid losses and loss adjustment expenses total $51.636 billion, consisting of $16.570 billion in property and $35.066 billion in casualty[467]. Capital Management - The company repurchased $2.9 billion of its common stock in 2024, maintaining a focus on financial strength and liquidity[445]. - Cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses totaled $318.0 billion as of December 31, 2024[446]. - Consolidated capital expenditures for 2024 were $19.0 billion, with BNSF and BHE forecasting approximately $14.0 billion in capital expenditures for 2025[452]. Miscellaneous - Float was approximately $171 billion at December 31, 2024, up from $169 billion in 2023 and $164 billion in 2022[334]. - The effective income tax rate for BNSF increased to 24.3% in 2024 from 23.1% in 2023[340]. - The methodologies for estimating IBNR liabilities involve various actuarial techniques, including paid and incurred loss development methods and Bornhuetter-Ferguson methods[473][474].

Earnings Announcement and Reporting - Berkshire Hathaway Inc. announced its earnings for the third quarter and first nine months ended September 30, 2024 [4] - The earnings release was issued on November 2, 2024 [4] - The press release is included as an exhibit to the Form 8-K filing [4] Executive Signatory - Marc D. Hamburg, Senior Vice President and Chief Financial Officer, signed the report on November 4, 2024 [5]