TLDR
- Berkshire’s Class A and Class B shares have declined through eight consecutive trading days, matching the duration of their December 2018 streak
- Shares have retreated 4.7% (Class A) and 4.9% (Class B) from their March 17 closing highs
- Fourth quarter 2025 operating earnings declined approximately 30% from the prior year to $10.2 billion; insurance underwriting income dropped 54%
- CEO Greg Abel initiated share repurchases on March 4 after a 10-month pause and acquired $15.3 million in personal holdings
- National Indemnity deployed $1.8 billion for approximately 2.5% of Tokio Marine Holdings, generating a 24% gain within days
Berkshire Hathaway shares have retreated for eight consecutive trading sessions, matching the company’s longest stretch of daily declines observed in December 2018. Class A shares have fallen 4.7% while Class B shares are off 4.9% from their most recent positive close recorded on March 17.
Berkshire Hathaway Inc., BRK-B
Market conditions have turned challenging across the board. The S&P 500 has declined 5.2% during this same period and sits roughly 7% lower for the year, extending its own losing streak to five weeks. Energy prices continue climbing while geopolitical tensions surrounding Iran contribute to investor caution.
The timing presents early challenges for Berkshire’s leadership transition. Greg Abel assumed the CEO position at the beginning of 2026, while Warren Buffett continues serving as chairman. Shares have declined more than 13% following Buffett’s announcement last year regarding his plans to step aside from the chief executive role.
Recent financial results added pressure. Fourth quarter 2025 operating earnings reached $10.2 billion, representing a decline of roughly 30% compared to the year-earlier period. Full-year operating earnings totaled $44.5 billion, sliding 6% from 2024 levels.
Insurance underwriting performance proved particularly weak, declining 54% year-over-year during the fourth quarter to $1.56 billion. While the comparison faced an exceptionally strong prior-year benchmark, the results still triggered investor concern when released on February 28.
BNSF, Berkshire’s railroad operation, continues battling margin compression from persistently high diesel prices. The conglomerate’s consumer and manufacturing segments face headwinds as elevated energy costs reduce consumer purchasing power.
Abel Makes Early Moves
Amid the share price weakness, Abel has acted swiftly to communicate capital deployment priorities. Berkshire restarted share repurchases on March 4, marking the first buyback activity since May 2024. Speaking with CNBC, Abel indicated the company repurchases shares when they trade below intrinsic value, signaling his view that current prices represent attractive value.
Abel further demonstrated conviction through a personal stock purchase totaling $15.3 million and announced plans to invest his entire after-tax CEO salary into Berkshire shares annually throughout his tenure.
Berkshire concluded 2025 holding $373.3 billion in cash, cash equivalents, and Treasury bills, down from the third quarter record of $381.6 billion while maintaining one of the world’s largest corporate liquidity positions.
New Stake in Tokio Marine
Berkshire’s insurance subsidiary National Indemnity deployed $1.8 billion this week to acquire just under 2.5% of Tokio Marine Holdings, Japan’s oldest insurance enterprise.
Tokio Marine shares jumped more than 24% following Monday’s announcement. The position has appreciated to nearly $2.3 billion in value.
Berkshire retains the ability to expand its ownership to just under 10% through open-market transactions. Acquisitions exceeding that threshold require board authorization.
Ajit Jain supervised the transaction with Buffett participating in an advisory role. Tokio Marine issued fresh shares to facilitate the purchase and committed to repurchasing an equivalent amount to maintain existing shareholder ownership percentages.
The companies plan to collaborate on reinsurance opportunities and pursue joint strategic investments. Tokio Marine characterized the arrangement as a “long-term strategic relationship.”
Berkshire’s current positions in five Japanese trading houses—Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo—have appreciated between 42% and 124% over the trailing 52 weeks, commanding a combined market value exceeding $44 billion.
Mitsubishi shares reached an all-time closing high on Friday.
