Berkshire Hathaway (BRK.A) Faces Eight-Day Slide Under Greg Abel’s Leadership

Key Takeaways

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• Key Takeaways

• Abel Takes Action

• Tokio Marine Investment

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• Both BRK.A and BRK.B shares have declined for eight consecutive trading days — the most extended losing period since late 2018

• Class A shares are down 4.7% while Class B has fallen 4.9% from their March 17 closing highs

• Fourth quarter 2025 operating profits declined approximately 30% compared to the previous year, totaling $10.2 billion; insurance underwriting profits plunged 54%

• CEO Greg Abel reinitiated share repurchases on March 4 and acquired $15.3 million of company stock personally

• The conglomerate acquired approximately 2.5% of Tokio Marine Holdings for $1.8 billion, with shares jumping 24% following the announcement

Berkshire Hathaway is experiencing an eight-session consecutive decline — marking the most prolonged downward streak since December 2018. Since closing positively on March 17, Class A shares have retreated 4.7% while Class B shares have dropped 4.9%.

Berkshire Hathaway Inc., BRK-B

Broader market turbulence has compounded the pressure. The S&P 500 has declined 5.2% during the identical timeframe and sits approximately 7% lower year-to-date, amid its own five-week consecutive downturn. Escalating energy costs and geopolitical tensions stemming from the Iran situation continue to dampen investor confidence.

The timing presents challenges for Berkshire. Greg Abel formally assumed the CEO position at the beginning of 2026, while Warren Buffett transitioned to the chairman role. Shares have tumbled more than 13% since Buffett’s announcement last year regarding his planned departure from the chief executive position.

The company’s financial performance added to investor concerns. Fourth quarter 2025 operating profits totaled $10.2 billion, representing approximately a 30% year-over-year decline. Full-year operating earnings reached $44.5 billion, down 6% compared to 2024.

Insurance underwriting operations proved particularly challenging, plummeting 54% year-over-year during Q4 to $1.56 billion. While this comparison faced a particularly robust prior-year baseline, the results nonetheless rattled market participants when disclosed on February 28.

BNSF, Berkshire’s railroad subsidiary, continues grappling with margin compression due to elevated diesel expenses. The conglomerate’s consumer-focused and manufacturing operations also face headwinds from increased energy costs that are squeezing consumer spending power.

Abel Takes Action

Notwithstanding the negative price momentum, Abel has acted decisively to communicate his capital deployment philosophy. Berkshire restarted its share repurchase program on March 4 — marking the first buyback activity since May 2024. Abel informed CNBC that the company repurchases shares when they trade beneath intrinsic value, signaling his belief that current prices represent value.

He additionally revealed a personal investment of $15.3 million in Berkshire shares and pledged to invest his complete after-tax compensation in company stock annually throughout his tenure as chief executive.

Berkshire concluded 2025 holding $373.3 billion in cash, cash equivalents, and Treasury bills, slightly down from the third quarter record of $381.6 billion but still representing among the largest corporate cash reserves worldwide.

Tokio Marine Investment

In a notable transaction announced this week, Berkshire’s National Indemnity insurance subsidiary invested $1.8 billion to acquire just under 2.5% of Tokio Marine Holdings — Japan’s most established insurance enterprise.

Tokio Marine shares rocketed more than 24% after Monday’s disclosure. The position now carries a market value approaching $2.3 billion.

Berkshire retains the flexibility to expand its ownership to just below 10% via open-market transactions. Any holdings exceeding that threshold necessitate board authorization.

The transaction was directed by Ajit Jain and reportedly included Buffett in a consultative role. Tokio Marine issued fresh shares to facilitate the acquisition and intends to execute equivalent buybacks to maintain share count neutrality.

Both organizations will work together on reinsurance opportunities and jointly evaluate strategic investment prospects. Tokio Marine characterized the arrangement as a “long-term strategic relationship.”

Berkshire’s current portfolio of five Japanese trading companies — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — have appreciated between 42% and 124% during the past 52 weeks, with aggregate market capitalization exceeding $44 billion.

Mitsubishi reached a record closing price on Friday.

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