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Abel’s First Berkshire Letter Affirms Buffett Playbook as Q4 Operating Earnings Drop

Investors now look to how he deploys Berkshire’s $373 billion cash reserve after a weak insurance quarter.

Overview

  • Berkshire reported fourth-quarter operating earnings of $10.2 billion, down more than 29% year over year, with insurance underwriting and investment income notably weaker.
  • Alongside results, the company recorded a $4.5 billion write-down tied to long-held positions in Kraft Heinz and Occidental Petroleum.
  • Greg Abel pledged to preserve Berkshire’s decentralized culture and strict capital discipline, describing the cash and Treasuries balance of about $373 billion as strategic dry powder.
  • Abel said Berkshire has no plans to start paying a dividend and noted the company has not repurchased shares since spring 2024.
  • He assumed ultimate responsibility for the equity portfolio, with Ted Weschler continuing to manage roughly 6% of investments, and signaled tighter operational focus at units such as BNSF and PacifiCorp.