Berkshire Hathaway closed out Warren Buffett's final quarter as CEO with a thud. Operating earnings dropped nearly 30% to $10.2 billion, dragged down by a struggling insurance business and falling investment income.
The culprit was insurance. Underwriting profits — the money Berkshire earns when its insurance companies collect more in premiums than they pay out in claims — fell more than 54% to $1.56 billion. Geico, Berkshire's car insurance giant, has been losing customers after raising rates sharply in recent years.
Insurance investment income also slid nearly 25%, adding to the pressure.
The results mark the first annual report written without Buffett at the helm. Greg Abel, who took over as CEO at the start of 2026, wrote Berkshire's shareholder letter this year — a tradition Buffett held for decades and that investors treated as something close to scripture.
Abel pledged to carry on the culture of financial discipline Buffett built. Buffett, now 95, remains chairman and still comes into the office five days a week.
One thing hasn't changed: Berkshire is still sitting on a staggering amount of cash. The company ended the quarter with $373 billion in cash and Treasury holdings — down slightly from a record $381 billion in Q3, but still an almost comically large war chest.
Abel was quick to note that the cash isn't a sign of retreat. The company is just waiting for the right deal.
Buffett spent 60 years turning Berkshire into one of the greatest wealth-creation machines in history. Abel now has to figure out what Act Two looks like — starting with a down quarter and a $373 billion pile of cash burning a hole in the company's pocket.