Berkshire Hathaway Adds Alphabet Stake as Operating Earnings Fall 29.8%
New CEO Greg Abel oversaw a 29.8% drop in fourth-quarter operating earnings to $10.2 billion and a 6.2% full-year decline to $44.5 billion in 2025, while net investment gains shrank to $30.7 billion. Berkshire’s portfolio moves include a fresh Alphabet stake, continued Apple reductions and a planned Kraft Heinz sale.
1. Operating Earnings Decline Under Abel
In Greg Abel’s inaugural year as CEO, Berkshire Hathaway’s operating earnings dropped 29.8% to $10.2 billion in Q4 and fell 6.2% to $44.5 billion for 2025. This underperformance reflects pressure across its insurance, rail and energy segments despite a resilient insurance float.
2. Investment Gains and Impairments
Net investment gains narrowed to $30.7 billion in 2025 from $41.6 billion the prior year, weighed down by $8.3 billion of impairment charges and $12.9 billion of unrealized gains for the full year. Quarter-to-quarter volatility in these gains underscores the accounting impact on headline earnings.
3. Portfolio Adjustments Highlight Alphabet Addition
Recent filings reveal Berkshire introduced a position in Alphabet while trimming its Apple stake and preparing to divest Kraft Heinz. These shifts suggest a strategic reallocation of its $300 billion-plus cash balance toward high-conviction tech holdings and potential new deals.