But Warren Buffett’s Berkshire Hathaway stock had less of a strong start to 2025. During the first quarter, its operating earnings fell 14%. In 2008, the company made $9.64 billion compared with $11.22 billion the year before. The earnings from railroad, energy, and insurance businesses are included in this number.
The fall was mainly because of lower profits from insurance. Insurance underwriting profits dropped almost 49%. The losses were considerable when wildfires raged in California. These fires cost Berkshire about $1.1 billion, Berkshire said.
Stock Performance Still Strong
Although they lost money, Berkshire Hathaway stock is still going strong. Shares of Class A have advanced almost 19% to Class A shares in 2025. It’s strong growth against the S&P 500, which is down about 3%. Investors trust the company and what it aims to do in the future. There is still a big reason for people to buy the stock and that is Warren Buffett.
Buffett Is Not Buying Much
Buffett is famous for making betting on stocks of undervalued quality. He didn’t do a lot in early 2025, but in 2025 it seemed that he would do a lot more. As opposed to buying, the company sold more stocks. It was Berkshire’s 10th consecutive quarter of being a net seller. He surprised some investors though that he didn’t take the dip to more invest.
Berkshire has a record-high cash reserves. Now the company has more than $347 billion in cash. It had about $334 billion at the end of last year. Buffett is waiting to buy at the right time, which is shown by this.
Currency Problems and Tariffs
In addition, the falling value of the U.S. dollar cost Berkshire money. Foreign exchange losses cost the company about $713 million. That area had a $597 million gain for it last year. It hurt its global business because the weaker dollar helped drive it into a slump.
Tariffs and trade are also an issue of concern. The global trade situation is unclear, said Buffett and his team. President Trump’s U.S. tariffs have made it riskier. This could impact their costs, the supply chain, the demand, and their worry. For now, they do not know how big the effect may be.
What This Means for Investors
You should also know that quarterly numbers don’t give a complete picture. Berkshire has also stated that stock prices and earnings can fluctuate short term. The view over the long term is what matters more. Still, many investors are confident that Berkshire is a good company with good management.
Even if Buffett is not buying, he is holding quality businesses. The group includes companies such as Geico, BNSF Railway and Dairy Queen. Due to these, Berkshire still stands strong during the rough stock market.
Final Thoughts
There are challenges and strengths in Berkshire Hathaway’s Q1 2025 report. Of course, earnings are coming down and losses from disasters and currency changes are real. However, the company’s stock is still up. Buffett is being careful with its cash pile, which is huge.
It points to why patience does matter for new investors. He is not taking any risks with poorly made deals. He waits instead for the right moment. And that’s how Berkshire Hathaway has become the brand it is today.
Once the global economy stabilizes, Berkshire may again start investing more. But the company is for the time being, strong and ready. While short-term news may keep away investors, there may be value in the stock for those who look beyond it.
