Berkshire Hathaway Profit Slides 30% in Buffett's Final Quarter as CEO

Weaker insurance earnings and a $4.5 billion Occidental writedown weigh on results

Mar. 3, 2026 at 5:07am

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Berkshire Hathaway reported a sharp 30% decline in fourth-quarter operating profit, capping the final quarter of Warren Buffett's tenure as chief executive. The drop was driven largely by weaker insurance underwriting and investment income, as well as a multibillion-dollar writedown tied to Berkshire's investment in Occidental Petroleum.

Why it matters

Berkshire's insurance businesses have long been the cornerstone of Buffett's empire, so the notable strain they faced during the quarter is significant. Additionally, the Occidental writedown, while not signaling a strategic retreat, marks a notable impairment for one of Buffett's major investments in recent years.

The details

Berkshire's quarterly operating profit fell to $10.2 billion, compared to $14.53 billion a year earlier. This was driven by a 38% drop in insurance underwriting and investment income, reflecting pricing pressures and the impact of lower interest rates on returns from Berkshire's vast cash reserves. The conglomerate also took a $4.5 billion writedown on its 26.9% stake in Occidental Petroleum, which it had built up starting in 2019 to help finance Occidental's acquisition of Anadarko Petroleum.

  • Berkshire reported its fourth-quarter and full-year 2025 results on February 28, 2026.
  • Buffett announced on May 3 that he would step down as CEO, with Greg Abel succeeding him at the start of 2026.

The players

Warren Buffett

The 95-year-old chairman and former CEO of Berkshire Hathaway, who is widely regarded as one of the greatest investors of all time.

Greg Abel

The new CEO of Berkshire Hathaway, who officially succeeded Buffett at the start of 2026 after Buffett's announcement that he would step down.

Berkshire Hathaway

A multinational conglomerate holding company headquartered in Omaha, Nebraska, and the primary investment vehicle of Warren Buffett.

Occidental Petroleum

An American oil and gas exploration and production company, in which Berkshire holds a 26.9% stake.

Cathy Seifert

An analyst at CFRA Research who commented on Berkshire's results.

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What they’re saying

“Top-line growth is a challenge. Abel set the tone that reinsurance and commercial insurance growth could be flat in 2026, and revenue growth more broadly has been pretty subdued.”

— Cathy Seifert, Analyst, CFRA Research

“We are committed to strengthening the great legacy built by Warren Buffett and his business partner Charlie Munger. Our focus will remain on long-term value creation and maintaining the culture that has guided this company for more than half a century.”

— Greg Abel, CEO, Berkshire Hathaway

What’s next

Investors will be closely watching to see if Greg Abel can deploy Berkshire's massive $373.3 billion cash hoard into transformative acquisitions that eluded Buffett in his later years, as the company navigates a tougher operating environment.

The takeaway

Berkshire Hathaway's weaker fourth-quarter results, marked by insurance pressures and a major writedown, highlight the challenges the conglomerate faces as it transitions to new leadership. However, the company's fortress balance sheet and diversified earnings base offer stability, and investors will be keen to see if Abel can reignite growth in the years ahead.