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Berkshire Hathaway Stock Drops 12% After Buffett Retirement News

Berkshire Hathaway Shares Tumble 12% After Warren Buffett’s Retirement, Q2 Profits Fall and Cash Reserves Dip

  • Berkshire Hathaway shares have dropped about 12% since Warren Buffett announced his retirement, outpacing the broader market.
  • The company’s operating profit in Q2 2025 fell by 4% to $11.2 billion.
  • Berkshire Hathaway reduced its cash reserves by $4 billion to $344 billion, continuing a cautious cash strategy.
  • The business sold $3 billion more stocks than it purchased, maintaining a net selling approach for 11 straight quarters.
  • The company reported a $3.8 billion writedown on its Kraft Heinz stake, now valued at $8.4 billion.

Berkshire Hathaway experienced a significant stock decline following Warren Buffett’s retirement announcement in May 2025. Since then, the company’s shares have dropped around 12%, with investors reacting to the leadership change and disappointing financial results.

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During the second quarter of 2025, Berkshire Hathaway posted a 4% decrease in operating profits, bringing the figure down to $11.2 billion. The company also sold $3 billion more in stocks than it bought for the quarter, a move in line with its ongoing stock-selling strategy.

Cash reserves dropped by $4 billion, totaling $344 billion at the end of the period. No share buybacks have taken place since May 2024, continuing a defensive approach with company funds.

The company also reported a $3.8 billion writedown on its investment in Kraft Heinz, decreasing the value of that holding to $8.4 billion. This contributed to the overall decline in segment profitability.

According to Cathy Seifert of CFRA Research, “This was probably a very tough decision for him, but better to leave on your own terms.” UBS analyst Brian Meredith commented, “Buffett leaves a company that is less reliant on his investing capabilities, with an array of leading businesses with strong cash flows.”

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Unlike the broader S&P 500, which has risen by 10% during this period, Berkshire Hathaway stock prices fell sharply after the retirement announcement on May 3rd. The company kept up its strategy of net selling, making this the 11th consecutive quarter where stock sales surpassed purchases.

For more details, see the original Berkshire Hathaway’s stock slump report.

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