Warren Buffett just wrapped his last quarter as CEO of Berkshire Hathaway — and he did it sitting on the largest pile of cash in corporate history.
Berkshire reported Q4 operating earnings of $10.2 billion, a 29% decline from $14.56 billion a year ago. Insurance underwriting profits got cut in half, dropping 54% to $1.56 billion. Insurance investment income slid 25% to $3.1 billion. Full-year operating earnings came in at $44.49 billion, down from $47.44 billion in 2024. By most measures, the business got worse before Buffett handed the keys to Greg Abel.
But here is the number that matters more than any earnings figure: $373.3 billion in cash. Down slightly from a record $381.6 billion last quarter, but still a staggering amount. For context, that is more cash than the entire market cap of all but roughly 20 companies on earth. Buffett refrained from buying back shares for the second straight quarter — despite BRK sitting near flat — suggesting he sees better opportunities ahead or, more likely, nothing cheap enough to buy.
Overall earnings, which include investment gains and losses, came in at $19.2 billion for Q4. That number was dragged down by a $4.5 billion impairment on Berkshire’s positions in Kraft Heinz and Occidental Petroleum — two bets that clearly did not age like fine wine. Full-year overall earnings fell to $66.97 billion from $89 billion, though Berkshire has always told investors to ignore short-term swings in its portfolio mark-to-market.
Greg Abel, now officially at the helm, used his first shareholder letter to nod to Buffett’s legacy while signaling continuity. Since 1965, Berkshire has compounded at 19.7% annually — nearly double the S&P 500. Cumulative gains exceed 6,000,000%. That is not a typo. Six million percent. The S&P 500, including dividends, returned 46,061% over the same period.
So what is Abel inheriting? A fortress balance sheet, a declining insurance cycle, an equity portfolio with some bruises, and the most famous cash pile in finance. Berkshire shares rose just 10% in 2025, lagging the S&P’s 16.4% advance. For long-term shareholders, that underperformance might sting. But anyone who has followed Buffett knows the pattern: hoard cash when prices are rich, deploy it when everyone else is panicking. The question now is whether Abel has the same nerve to pull that trigger when the moment arrives.