March 2 (Reuters) – Berkshire Hathaway shares on Monday had their largest decline since Warren Buffett announced he would step down as chief executive, after the conglomerate posted financial results that fell short of some analysts’ expectations and expressed caution about investing its cash.
The Class A shares fell as much as 5.3% by early afternoon, and Class B shares, worth about 1/1,500th as much, fell about the same amount. Shares fell as much as 6.8% last May 5, after Buffett unexpectedly announced that Greg Abel would take charge starting in 2026. Buffett had led Berkshire since 1965, and remains chairman.
Berkshire on Saturday said fourth-quarter operating profit, which excludes gains and losses on common stocks led by Apple, fell 30% to $10.2 billion, including a 38% overall decline at Geico and other insurance businesses.
In his first annual letter to shareholders, Abel said Geico may face continued pressure to keep customers as rivals lower car insurance rates, while other insurance and reinsurance operations face pricing pressures as more capital enters their markets.
While saying Berkshire’s $373 billion cash stake did not signal a “retreat from investing,” Abel gave no indication Berkshire planned to resume stock buybacks after 1-1/2 years with none, or pay a shareholder dividend.
“We will assess value carefully, act patiently, and hold for the long term – preferably forever,” he wrote.
Keefe, Bruyette & Woods analyst Meyer Shields, who rates Berkshire “underperform,” on Monday said results “broadly” missed forecasts, also reflecting weakness at the BNSF railroad and in energy, manufacturing and retailing operations. He lowered his 2026 earnings forecast by 5%.
(Reporting by Jonathan Stempel in New York; Editing by Bill Berkrot)
By Jonathan Stempel
