Performance Overview - Berkshire Hathaway's Class A shares rose 10.85% and Class B shares gained 10.89% over the past year, underperforming the S&P 500's 16.39% return [1] - Following a decline in financial results for the December quarter, Class B shares fell 4.9% on March 2, marking their worst session since May 5, 2025 [2] - Operating earnings for Q4 dropped 30% to $10.2 billion, with insurance underwriting earnings falling 19.5% to $7.2 billion compared to 2024 [2] Full-Year Financials - For the full year 2025, Berkshire reported operating earnings of $44.5 billion, down from $47.4 billion in 2024 but above the five-year average of $37.5 billion [3] - As of March 6, Class A shares are down 0.93% and Class B shares are down 0.73% year-to-date, slightly outperforming the S&P 500's 1.54% loss [3] Leadership Transition - Warren Buffett, who transformed Berkshire Hathaway from a struggling textile maker into a major investment conglomerate, stepped down as CEO at the beginning of 2026 [4] - Greg Abel, Buffett's longtime lieutenant, has taken over as CEO while Buffett remains as chairman [4] Share Repurchase and Investment Strategy - On March 5, Berkshire Hathaway resumed share repurchases for the first time since 2024, with Abel purchasing $15 million worth of stock, equivalent to his after-tax annual salary [5] - Abel committed to using his entire salary for Berkshire share purchases each year, indicating a continued investment strategy [6] - In his first shareholder letter, Abel assured that Berkshire will maintain its long-standing investment strategy and will not pull back on investing [7]
Veteran trader makes bold call on Berkshire Hathaway shares