according to the website - By Cryptopolitan_News

Berkshire Hathaway once again fell short of Wall Street expectations, reporting a second consecutive quarterly profit decline.

The company reported a 4% decline in operating profit in the second quarter of 2025, totaling $11.16 billion compared to $11.6 billion in the same period last year.

Berkshire Hathaway explained the decline due to weaker underwriting results from its insurance divisions, which negated last year’s record growth. Other sectors, such as railroads, energy, and retail, performed better, but this was not enough to elevate the entire group to a new level.

Total net income was $12.37 billion, or $8,601 per Class A share, compared to $30.3 billion, or $21,122 per share, a year earlier. The decline in net income was partly due to changes in the value of the company's investments, which it is required to reflect in its financial statements under U.S. accounting rules, even if the assets have not been sold.

Cash is growing, but no stock buybacks or major deals
At the same time, despite the profit decline, Berkshire Hathaway's cash grew to a record $344 billion by the end of June, compared to $333 billion at the end of March. Despite having more than enough capital to make decisions, Warren Buffett and his team did not use it for stock buybacks.

This was the fourth consecutive quarter without a stock buyback, although the company stated it would buy back shares if the price fell below what Warren considers fair.

Class A shares peaked at $809,350 on May 2, just before Warren announced his departure as CEO at the end of 2025. By the end of June, shares were trading at $711,480, but there were no buybacks. The 94-year-old Warren has been cautious in recent years. He has not made major acquisitions, and his team has been selling more shares than buying.

In the second quarter, Berkshire sold $6.92 billion in stocks and bought $3.9 billion, continuing a trend that has lasted for 11 consecutive quarters.

Warren explained his approach earlier this year in his annual letter to shareholders. 'The overwhelming majority of your money stays in stocks. This preference will not change,' he wrote.

However, he has not taken significant actions in line with this preference recently. One reason may be rising prices. The S&P 500 surged more than 10% in the second quarter and reached an all-time high by June. This made it difficult to find good deals.

Kraft Heinz is one of Warren's worst bets.
Berkshire also wrote down $3.8 billion on its stake in Kraft Heinz Co., reducing the carrying value of the holding to $8.4 billion from more than $17 billion in 2017.

Warren was a key figure in the merger of Kraft and Heinz nearly ten years ago, but that move has not paid off. Shares of the packaged food giant have fallen 62% since the deal, while the S&P 500 has risen 202% over the same period.

In its regulatory filing, Berkshire stated that the loss was 'not temporary' and explained:

‘Given these factors, as well as ongoing economic and other uncertainties, we concluded that the unrealized loss, represented by the difference between the carrying value of our investments and their fair value, was not temporary.’

As of June, Warren's company still owns 27.4% of Kraft Heinz shares, but the write-down may give it the opportunity to begin reducing this stake.

Jim Sanders, an analyst at Edward Jones, believes this may be a signal. 'I think they are giving themselves more flexibility for a potential exit from their position in the future,' he said. 'This is one of Warren's biggest mistakes in the last couple of decades. Perhaps it’s time to step away from it.'

Currency fluctuations further exacerbated the results for this quarter. As Berkshire Hathaway has some debt in euros, British pounds, and yen, these loans must be converted into dollars. In the second quarter, the dollar's weakening led to a decrease in after-tax profits of $877 million. A year ago, a similar effect, on the contrary, benefited the company, adding $446 million in after-tax profits.

Warren has long argued that operating profit is the best way to assess a company's true performance. Unrealized gains and losses on stocks can lead to significant fluctuations in net income from quarter to quarter, even if the stocks have not been sold. This volatility was evident this quarter: net income changed by nearly $18 billion compared to last year.

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