Warren Buffett’s Berkshire Hathaway reported a slight decrease in second-quarter operating earnings, citing concerns about the negative impacts of steep U.S. tariffs. The conglomerate’s operating profit, which includes businesses such as insurance and railroads, fell by 4% to $11.16 billion compared to the previous year. The decline in earnings was mainly attributed to a decrease in insurance underwriting, although other sectors like railroad, energy, manufacturing, service, and retailing saw an increase in profits.
Berkshire Hathaway issued a warning about the potential effects of President Donald Trump’s tariffs on its various businesses. The company expressed uncertainty about the outcome of ongoing trade policies and tariffs, stating that adverse consequences could affect both its operating businesses and investments in equity securities.
Despite maintaining a cash hoard of $344.1 billion, Berkshire Hathaway was a net seller of stocks for the 11th consecutive quarter, selling off $4.5 billion in equities during the first six months of 2025. The conglomerate also refrained from repurchasing any stock during this period, even as share prices dropped by over 10% from their peak.
Berkshire Hathaway recorded a loss of $3.8 billion from its investment in Kraft Heinz, a struggling asset for the conglomerate. The consumer goods company has been considering spinning off its grocery business, and two Berkshire executives resigned from Kraft Heinz’s board in May.
This latest earnings report comes in the wake of Warren Buffett’s announcement that he will step down as CEO at the end of 2025. Greg Abel, currently the vice-chairman of non-insurance operations at Berkshire Hathaway, is slated to take over as CEO, with Buffett remaining as chairman of the board.
The future of Berkshire Hathaway remains uncertain as global economic conditions continue to evolve, with tariffs and trade policies playing a significant role in shaping the conglomerate’s performance. Investors will be closely watching how the company navigates these challenges under new leadership in the coming years.
