Warren Buffett speaks during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, on May 3, 2025.
CNBC
Berkshire Hathaway on Saturday reported a small decline in second-quarter operating earnings as Warren Buffett’s conglomerate warns of negative impacts from steep U.S. tariffs.
Berkshire’s operating profit — those from the company’s wholly owned businesses including insurance and railroads — dipped 4% year over year to $11.16 billion in the second quarter. The results were impacted by a decline in insurance underwriting, while railroad, energy, manufacturing, service and retailing all saw higher profits from a year ago.
The Omaha-based conglomerate once again issued a stern warning of President Donald Trump’s tariffs and the potential impact on its various businesses.
“The pace of changes in these events, including tensions from developing international trade policies and tariffs, accelerated through the first six months of 2025,” Berkshire said in its earnings report. “Considerable uncertainty remains as to the ultimate outcome of these events.”
“It is reasonably possible there could be adverse consequences on most, if not all, of our operating businesses, as well as on our investments in equity securities, which could significantly affect our future results,” it said.
Buffett’s cash hoard fell slightly to $344.1 billion, from the $347 billion level at the end of March.
The conglomerate didn’t repurchase any stock in the first half of 2025 even as shares declined more than 10% from a record high.
In May, the 94-year-old “Oracle of Omaha” announced that he’s stepping down as CEO at the end of 2025 after experiencing the physical effects of aging. Greg Abel, Berkshire’s vice-chairman of non-insurance operations, is set to take over as CEO, while Buffett will remain as chairman of Berkshire’s board.
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