Berkshire's Q4 op profit dropped 30% to $10.2B, hit by 38% insurance plunge from low rates & Geico claims/ad costs. $4.5B Occidental writedown on oil stake—no plans to sell. Full yr op profit -6%. Abel takes CEO reins, vows discipline. Cash pile: $373B for buys. Long-term compounding still key[1]
The market's not impressed. Berkshire shares have lagged the S&P 500 by 27+ percentage points since Buffett's May exit announcement. Abel inherited an empire, but also the pressure of filling the biggest shoes in investing history. Full-year operating profit down 6%, net income down 25%. The transition era begins.
Abel's first shareholder letter paid tribute to Buffett as "arguably the greatest investor of all time" but also sent a signal: some businesses need better performance. Translation — he's going hands-on. Revenue growth was "tepid" across the board, consumer demand "sluggish" at Duracell, Fruit of the Loom, even Squishmallows.
The Occidental writedown is brutal optics. After Buffett spent years praising management and building a 26.9% stake since 2019, they're now calling the stock decline "not temporary." They're not selling, but marking it down $4.5B says the oil bet isn't aging well. Second major writedown of 2025 after Kraft Heinz ($3.76B).
For the 13th straight quarter, Berkshire sold more stocks than it bought. No buybacks for six quarters running. Abel's hoarding cash like Buffett on steroids, but unlike his mentor's last decade of deal drought, he's got the firepower to make moves. The question: what's he waiting for?
The insurance empire that built Berkshire is showing cracks. Insurance profit fell 38% as falling interest rates crushed returns on their cash pile, and Geico got squeezed by rising ad costs and claims. Even the reinsurance business pulled back — pricing pressure made them pickier about new customers.
Berkshire just posted its first earnings under Greg Abel's leadership, and the numbers tell a story: Q4 operating profit dropped 30% to $10.2B, insurance took a beating, and they wrote down $4.5B on Occidental Petroleum. But here's the kicker — they're sitting on $373.3B in cash, the biggest war chest in corporate history.
Berkshire's Q4 op profit dropped 30% to $10.2B, hit by 38% insurance plunge from low rates & Geico claims/ad costs. $4.5B Occidental writedown on oil stake—no plans to sell. Full yr op profit -6%. Abel takes CEO reins, vows discipline. Cash pile: $373B for buys. Long-term compounding still key[1]
6/6 🧵
The market's not impressed. Berkshire shares have lagged the S&P 500 by 27+ percentage points since Buffett's May exit announcement. Abel inherited an empire, but also the pressure of filling the biggest shoes in investing history. Full-year operating profit down 6%, net income down 25%. The transition era begins.
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#threadstorm
5/6 🧵
Abel's first shareholder letter paid tribute to Buffett as "arguably the greatest investor of all time" but also sent a signal: some businesses need better performance. Translation — he's going hands-on. Revenue growth was "tepid" across the board, consumer demand "sluggish" at Duracell, Fruit of the Loom, even Squishmallows.
4/6 🧵
The Occidental writedown is brutal optics. After Buffett spent years praising management and building a 26.9% stake since 2019, they're now calling the stock decline "not temporary." They're not selling, but marking it down $4.5B says the oil bet isn't aging well. Second major writedown of 2025 after Kraft Heinz ($3.76B).
3/6 🧵
For the 13th straight quarter, Berkshire sold more stocks than it bought. No buybacks for six quarters running. Abel's hoarding cash like Buffett on steroids, but unlike his mentor's last decade of deal drought, he's got the firepower to make moves. The question: what's he waiting for?
2/6 🧵
The insurance empire that built Berkshire is showing cracks. Insurance profit fell 38% as falling interest rates crushed returns on their cash pile, and Geico got squeezed by rising ad costs and claims. Even the reinsurance business pulled back — pricing pressure made them pickier about new customers.
1/6 🧵
Berkshire just posted its first earnings under Greg Abel's leadership, and the numbers tell a story: Q4 operating profit dropped 30% to $10.2B, insurance took a beating, and they wrote down $4.5B on Occidental Petroleum. But here's the kicker — they're sitting on $373.3B in cash, the biggest war chest in corporate history.