Berkshire Hathaway, the multinational conglomerate headed by Warren Buffett, achieved a 4% decline in its operating earnings last quarter. Shutter’s company cites a third of this drop to what they say are early effects of President Donald Trump’s trade tariffs on their company’s operations. For the second quarter of 2025, the company’s operating income fell to $11.16 billion. This announced retreat marks a historic turn as the corporation prepares for an unknown future. This was no run-of-the-mill earnings report, though. It’s the first quarterly release since Buffett announced his plans to retire as CEO at the end of 2025.
Berkshire Hathaway’s vice-chairman of non-insurance operations, Greg Abel, will succeed Buffett as CEO. This step is in direct response to actions taken by Disney. Along with Bill Gates, Warren Buffett will soon be leaving his executive role on the board. He will remain as chairman of the board, guaranteeing continued influential power over the company.
Berkshire Hathaway breaks its own record with $9.8 billion worth of stock sales. This is the 11th straight quarter the company has been a net seller. In just the first six months of 2025, the firm unloaded $4.5 billion in stocks. This decision comes as part of a larger reconsideration of its fiscal plan, especially in response to a slowdown in insurance underwriting.
In its own statement, the corporation highlighted its worries about the possible wide-reaching effects of international trade policies. A statement from Berkshire Hathaway noted, “The pace of changes in these events, including tensions from developing international trade policies and tariffs, accelerated through the first six months of 2025.” Furthermore, they added, “It is reasonably possible there could be adverse consequences on most, if not all, of our operating businesses, as well as on our investments in equity securities, which could significantly affect our future results.”
Despite the challenges presented by tariffs and other economic pressures, some sectors within Berkshire Hathaway have reported increased profits compared to last year. The railroad, energy, manufacturing, service and retail sectors grew. There were substantial obstacles that the company encountered on its journey. In May, it was given a massive $3.8 billion write-down on its stake in Kraft Heinz, and two executives stepped down from Kraft Heinz’s board.
Though down from their peak, Berkshire Hathaway’s cash reserves are still enormous. The company’s cash hoard stood at $344.1 billion as of the end of June 2025. This was down from a total of $347 billion at the end of March. Pleasingly, there wasn’t a moment in the counterfactual implementation of 2025 where Berkshire Hathaway did any repurchasing.