Berkshire Hathaway reported a 4% decrease in its second-quarter operating earnings, citing concerns over U.S. tariffs.
Operating Earnings Decline
The conglomerate’s operating profit, which includes its insurance and railroad businesses, fell to $11.16 billion. While insurance underwriting saw a decline, sectors like railroad, energy, manufacturing, service, and retail experienced profit growth.
Tariff Concerns
Berkshire issued a warning about the potential negative effects of U.S. tariffs on its businesses. The company noted the rapid changes in international trade policies and the uncertainty surrounding their outcomes.
Financial Moves
Berkshire’s cash reserves slightly decreased to $344.1 billion. The company continued its trend of being a net seller of stocks, selling $4.5 billion in equities in the first half of 2025.
Leadership Transition
This earnings report follows Warren Buffett’s announcement of stepping down as CEO by the end of 2025, with Greg Abel set to succeed him.
