Berkshire Hathaway closed 0.11% lower at $475.66 on March 26, extending a losing streak to seven consecutive sessions. Shares have declined more than 3.33% over that stretch, underperforming the S&P 500 over the same period.
The slide comes at a sensitive moment. Greg Abel took over as CEO at the start of 2026, with Warren Buffett remaining as chairman. The stock’s recent weakness is drawing renewed attention to the company’s near-term headwinds and what the new leadership era means for shareholders.
What’s behind Berkshire’s selling pressure
Berkshire’s business mix is facing pressure from several directions at once. The company’s exposure to consumer spending, manufacturing, and freight rail leaves it vulnerable to an environment in which oil prices are elevated and economic uncertainty is rising.
BNSF, Berkshire’s freight railroad, operates in an environment where diesel costs directly affect margins. Higher energy prices feed through to transportation costs across multiple Berkshire subsidiaries. The consumer brands in the portfolio face a similar dynamic, as higher fuel costs erode the real disposable income that drives spending on discretionary goods.
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Q4 2025 operating earnings dropped roughly 30% year over year to $10.2 billion, weighed down by a sharp decline in insurance underwriting profits, which fell 54% year over year. Full year 2025 operating earnings came in at $44.5 billion, down 6% from 2024.
The earnings decline looks worse against a tough comparison. The prior year included exceptionally strong insurance underwriting results that are unlikely to repeat at the same level. But the numbers were enough to spook investors when Berkshire reported results on Feb. 28.
The cash hoard and what Abel is doing with it
Berkshire ended 2025 with $373.3 billion in cash, cash equivalents, and U.S. Treasury bills. That figure slipped from a record $381.6 billion in Q3 2025, but remains one of the largest cash positions held by any company in the world.
One of the most closely watched questions heading into 2026 was whether Abel would begin deploying that capital. The answer has started to come through.
Berkshire resumed buybacks on March 4, its first share repurchases since May 2024. Abel also disclosed a personal purchase of $15.3 million in Berkshire stock, committing to invest his entire after-tax salary in the company each year he serves as CEO.
That is a meaningful signal. When Abel told CNBC that Berkshire repurchases shares when the stock trades below intrinsic value, the buyback restart suggested he believes the current price represents that opportunity.
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What the Q4 2025 earnings showed
The February earnings release gave investors a detailed look at where the business stands.
- Operating earnings: Q4 operating earnings of $10.2 billion, down roughly 30% year over year. Full year 2025 operating earnings of $44.5 billion, down 6%.
- Insurance underwriting: The primary drag on Q4 results. Insurance underwriting profits fell 54% year over year to $1.56 billion, though the comparison period was unusually strong.
- Insurance float: Approximately $176 billion at year-end, up $5 billion from the prior year. The float funds Berkshire’s investment portfolio and remains a significant structural advantage.
- Cash position: $373.3 billion at year-end, down from the Q3 record but still historically high. The cash generates meaningful income at current Treasury yields.
The Abel era and what Berkshire investors are watching
Abel’s first months as CEO have been defined by two things: the earnings release that disappointed the market, and the early signals he has sent on capital allocation. The buyback restart and personal stock purchase were interpreted by many observers as a deliberate show of conviction. Abel’s move drew significant attention from investors watching how the new CEO would signal his intentions.
Berkshire’s 52-week range runs from $455.19 to $542.07. At $475.66, shares are trading near the lower end of that range. The stock rose about 10% in 2025, lagging the S&P 500’s 16.4% advance for the year.
The question for investors now is whether the seven-day losing streak reflects a genuine reassessment of Berkshire’s near-term earnings outlook, or whether it is a broader rotation away from the kind of value-oriented, diversified conglomerate model that Berkshire represents.
With Abel having already restarted buybacks and put his own money in, the company’s leadership offered its clearest answer yet regarding which side of that debate they are on.
Related: Warren Buffett makes a stunning move with his Berkshire stake
