Finance

People watch as Berkshire Hathaway chairman Warren Buffett is seen on a screen speaking at the Berkshire Hathaway Inc annual shareholders’ meeting, in Omaha, Nebraska, U.S., May 3, 2025.
Brendan McDermid | Reuters

Berkshire Hathaway shares are hanging on solidly Monday as investors process Warren Buffett’s surprise announcement to step down and envision a new path for the conglomerate after his legendary 60-year run.
Buffett, 94, picked the very last moment at Berkshire’s annual meeting in Omaha, Nebraska, to tell his loyal shareholders that it’s time for Greg Abel, vice chairman of non-insurance operations, to replace him as CEO. The board voted unanimously on Sunday to make Abel president and CEO on Jan. 1, 2026, and for Buffett to remain as chairman.

Class B shares fell 2.9% in premarket trading Monday after hitting an all-time high at $539.80 Friday. Class A shares dropped 2.8% after closing at a record high at $809,350 apiece. Berkshire issued Class B shares in 1996 at a price equal to one-thirtieth of a Class A share. In 2010, Berkshire Class B shares split 50-for-1.
“Shareholders should welcome this transparent transition, but also have confidence that Warren isn’t going anywhere,” said Macrae Sykes, portfolio manager at Gabelli Funds and a Berkshire shareholder. “Retaining the position of Chairman means he can continue to mentor Greg and the Berkshire leaders, while also providing additional intellectual capacity when the inevitable time for more major capital allocation occurs.”
It marks an end of an epic era for Berkshire, which was a failing New England textile mill six decades ago when Buffett used an investment partnership he ran to take control. Berkshire has grown into a one-of-a-kind juggernaut worth nearly $1.2 trillion with businesses encompassing insurance, railroad, retail, manufacturing and energy. Buffett is handing over his reins on a particularly high note as Berkshire shares just reached a new peak Friday.

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Berkshire Hathaway Class B shares

“Buffett leaves a company that is less reliant on his investing capabilities, with an array of leading businesses with strong cash flows,” Brian Meredith, UBS’ Berkshire analyst, said in a note. “Operationally, we expect little change at BRK and the culture/strategy to remain unchanged under Abel.”
The stock could also be reacting to Berkshire’s first-quarter results that showed a 14% decline in operating earnings, driven by a 48.6% plunge in insurance-underwriting profit. Berkshire said the Southern California wildfires led to a $1.1 billion loss during the period.
Berkshire shares have significantly outperformed the S&P 500, rising nearly 19% this year. Investors seeking relatively safe places to hide find Berkshire appealing because of the defensive nature of its huge insurance empire and the conglomerate’s unmatched balance sheet.

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SURPRISING PEOPLE at the age of 94 is no mean feat. Warren Buffett has retained that capacity. As Berkshire Hathaway’s annual shareholder meeting on May 3rd drew to a close, Mr Buffett announced that he would be stepping down as CEO of the sprawling conglomerate. The move will come at the end of the year, after six decades in charge. Mr Buffett had been preparing for his own departure. But he said he did not give most of Berkshire’s directors advance notice of his announcement. Nor did he tell Greg Abel, his presumptive successor. More

SURPRISING PEOPLE at the age of 94 is no mean feat. Warren Buffett has retained that capacity. As Berkshire Hathaway’s annual shareholder meeting on May 3rd drew to a close, Mr Buffett announced that he would be stepping down as CEO of the sprawling conglomerate. The move will come at the end of the year, after six decades in charge. Mr Buffett had been preparing for his own departure. But he said he did not give most of Berkshire’s directors advance notice of his announcement. Nor did he tell Greg Abel, his presumptive successor. More

SURPRISING PEOPLE at the age of 94 is no mean feat. Warren Buffett has retained that capacity. As Berkshire Hathaway’s annual shareholder meeting on May 3rd drew to a close, Mr Buffett announced that he would be stepping down as CEO of the sprawling conglomerate. The move will come at the end of the year, after six decades in charge. Mr Buffett had been preparing for his own departure. But he said he did not give most of Berkshire’s directors advance notice of his announcement. Nor did he tell Greg Abel, his presumptive successor. More

An end of an era was announced in Omaha Saturday as Warren Buffett said he will soon ask the board of Berkshire Hathaway to have Greg Abel replace him as CEO at year end.
While Buffett is 94 and Abel was designated as CEO successor in 2021, it nonetheless came as a surprise to the thousands of admiring shareholders gathered for this year’s annual meeting to once again hear the investing legend opine on the future of the company.

“Tomorrow, we’re having a board meeting of Berkshire, and we have 11 directors. Two of the directors, who are my children, Howie and Susie, know of what I’m going to talk about there. The rest of them, this will come as news to, but I think the time has arrived where Greg should become the chief executive officer of the company at year end,” said Buffett, in the final few minutes of the meeting.
In 1965, Buffett bought what was then a failing New England textile mill, and over six decades transformed the company into a one-of-a-kind conglomerate with businesses ranging from Geico insurance to BNSF Railway. Buffett is handing over his reins on a high note as Berkshire shares just reached a new peak, giving the conglomerate a market cap of nearly $1.2 trillion.The “Oracle of Omaha” said he will still “hang around” to help, but the final word on company operations and capital deployment would be with Abel, 62, currently the vice chairman of non-insurance operations for Berkshire.

Warren Buffett and Greg Abel walkthrough the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025.
David A. Grogen | CNBC

“I could be helpful, I believe, in that in certain respects, if we ran into periods of great opportunity or anything,” he added.
Buffett, who owns more than $160 billion in Berkshire as its largest shareholder, said he wouldn’t sell a single share of the stock after he transitions to this new phase.
“I would add this, the decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine,” said Buffett, who used a cane to walk around the meeting, but answered questions for four hours with surprising energy and clarity for his age.

Buffett sang Abel’s praises in front of some 40,000 shareholders Saturday, saying his more hands-on managerial style is working better for Berkshire’s 60-plus subsidiaries.
“It’s working way better with Greg than with me because, you know, I didn’t want to work as hard as he works,” Buffett said. “I could get away with it because we’ve got a basically good business, very good business.”
The Canadian executive, born in Edmonton, Alberta, has a 25-year tenure at Berkshire under his belt. Abel joined Berkshire in 2000 when the conglomerate bought MidAmerican Energy, where he eventually became the CEO in 2008. Prior to that, Abel worked at CalEnergy where he transformed the small geothermal firm into a diversified energy business.
When it comes to capital allocation, Abel said he will inherit Buffett’s patient value investing style and he stands ready to deploy Berkshire’s monstrous $347 billion cash fortress whenever a good opportunity presents itself.
“It’s really the investment philosophy and how Warren and the team have allocated capital for the past 60 years,” Abel said. “Really, it will not change. And it’s the approach we’ll take as we go forward.”

Buffett’s new role?

Buffett and Abel told CNBC’s Becky Quick after the shareholder meeting that the pair would discuss at the Sunday board meeting what Buffett’s role will be formally next year. Buffett is currently also chairman of the conglomerate.
“I think they’ll be unanimously in favor of it,” Buffett said of the board’s pending CEO decision Sunday.

Warren Buffett speaks during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025.

So it’s not clear whether Abel will also assume the chairman role. Buffett told The Wall Street Journal earlier this year that his son Howie Buffett would become nonexecutive chairman after his death to preserve the company culture. It’s not clear whether this move will impact that decision.
“It surprises me, but it impresses me,” said Ron Olson a Berkshire board director, after the shareholder meeting Saturday. “I am very anxious to see Warren become the Charlie Munger for Greg Abel.”
After the announcement that apparently Abel didn’t even know was coming, the meeting ended with a standing ovation for Buffett.

The crowd reacts during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025.

— With reporting by Lisa Kailai Han and Fred Imbert More

OMAHA, Nebraska — Warren Buffett on Saturday criticized President Donald Trump’s hardline trade policy, without naming him directly, saying it’s a big mistake to slap punitive tariffs on the rest of the world.
“Trade should not be a weapon,” Buffett said at Berkshire Hathaway’s shareholder meeting, an annual gathering in front of thousands in Omaha, Nebraska. “I do think that the more prosperous the rest of the world becomes, it won’t be at our expense, the more prosperous we’ll become, and the safer we’ll feel, and your children will feel someday.”

Trade and tariffs “can be an act of war,” added the legendary investor. “And I think it’s led to bad things. Just the attitudes it’s brought out. In the United States, I mean, we should be looking to trade with the rest of the world and we should do what we do best and they should do what they do best.”
Buffett’s comments, his most direct yet on tariffs, came after the White House’s rollout of the highest levies on imports in generations shocked the world last month, triggering extreme volatility on Wall Street. The president later went on to announce a sudden 90-day pause on much of the increase, except for China, as the White House sought to make deals with countries. The pause has stabilized the market somewhat.
Still, Trump has slapped tariffs of 145% on imported Chinese goods this year, prompting China to impose retaliatory levies of 125%. China said last week it is evaluating the possibility of starting trade negotiations with the U.S.
Buffett explained that protectionist policies could have negative consequences over the long term for the U.S., after it’s become the leading industrial nation in the world.
“It’s a big mistake, in my view, when you have seven and a half billion people that don’t like you very well, and you got 300 million that are crowing in some way about how well they’ve done – I don’t think it’s right, and I don’t think it’s wise,” Buffett said. “The United States won. I mean, we have become an incredibly important country, starting from nothing 250 years ago. There’s not been anything like it.”

Investors had been waiting to hear from the 94-year-old “Oracle of Omaha” for his guidance to navigate the uncertain macroenvironment as well as his assessment on the state of the economy. The trillion-dollar Berkshire’s vast array of insurance, transportation, energy, retail and other businesses, from Geico to Burlington Northern to Dairy Queen, leave Buffett uniquely qualified to comment on the current health of the American economy. The first-quarter GDP was just reported to have contracted for the first time since 2022.
Berkshire said in its first-quarter earnings report that tariffs and other geopolitical events created “considerable uncertainty” for the conglomerate. The firm said it’s not able to predict any potential impact from tariffs at this time.
Buffett has been in a defensive mode, selling stocks for 10 straight quarters. Berkshire dumped more than $134 billion worth of stock in 2024, mainly due to reductions in Berkshire’s two largest equity holdings — Apple and Bank of America. As a result of the selling spree, Berkshire’s enormous pile of cash grew to yet another record, at $347 billion at the end of March. More

Operating earnings, which include the conglomerate’s fully owned insurance and railroad businesses, fell 14% to $9.64 billion during the first three months of the year.
Much of that decline was driven by a 48.6% plunge in insurance-underwriting profit.
Berkshire said President Donald Trump’s tariffs and other geopolitical risks created an uncertain environment for the conglomerate, owner of BNSF railway, Brooks Running and Geico insurance.

(Follow along with our full coverage of Berkshire Hathaway’s annual meeting here. Warren Buffett begins talking at 9 a.m. ET.)
Warren Buffett’s Berkshire Hathaway reported first-quarter results on Saturday that showed a steep drop in operating earnings from the year-earlier period. The conglomerate, which owns a vast array of insurance, transportation, energy, retail and other businesses also warned that tariffs may further hit profits.

Operating earnings, which include the conglomerate’s fully owned insurance and railroad businesses, fell 14% to $9.64 billion during the first three months of the year. In the first quarter of 2024, they totaled $11.22 billion.
On per share basis, operating earnings were $4.47 last quarter, down from $5.20 per class B share in the same period one year ago. That compares to an estimate of $4.89 per class B share from UBS and an overall consensus estimate from 4 analysts of $4.72 a share per FactSet.
Much of that decline was driven by a 48.6% plunge in insurance-underwriting profit. That came in at $1.34 billion for the first quarter, down from $2.60 billion a year prior. Berkshire said the Southern California wildfires led to a $1.1 billion loss in Q1.
Berkshire’s bottom line also took a hit from the dollar losing value in the first quarter. The company said it suffered an approximate $713 million loss related to foreign exchange. This time last year, it benefited from a $597 million forex gain.
The dollar index fell nearly 4% in the first quarter. Against the Japanese yen, it lost 4.6%.

Tariff uncertainty

Berkshire said President Donald Trump’s tariffs and other geopolitical risks created an uncertain environment for the conglomerate, owner of BNSF railway, Brooks Running and Geico insurance. The firm said it’s not able to predict any potential impact from tariffs at this time.
“Our periodic operating results may be affected in future periods by impacts of ongoing macroeconomic and geopolitical events, as well as changes in industry or company-specific factors or events,” Berkshire said in the earnings report. “The pace of changes in these events, including international trade policies and tariffs, has accelerated in 2025. Considerable uncertainty remains as to the ultimate outcome of these events.”
“We are currently unable to reliably predict the potential impact on our businesses, whether through changes in product costs, supply chain costs and efficiency, and customer demand for our products and services,” it said.

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BRK.A vs S&P 500 in 2025

Berkshire’s cash hoard ballooned to a fresh record during the first quarter, climbing to more than $347 billion from around $334 billion at the end of 2024, showing that Buffett did not use the first-quarter drop in the stock market to deploy the money. In fact, Berkshire was a net seller of stocks for a 10th quarter in a row.
The company’s overall earnings also plunged nearly 64% year over year, as Buffett’s portfolio of publicly traded names took a hit to start the year. That said, Berkshire always advises investors to look past these quarterly changes.
“The amount of investment gains (losses) in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules,” Berkshire’s release said.
The report comes as Berkshire enjoys a stellar year-to-date performance, while the broader market languishes. In 2025, Class A shares of Berkshire are up nearly 19%, while the S&P 500 is down 3.3% as uncertainty from tariffs pressures tech and other sectors.
— CNBC’s Yun Li contributed reporting. More

The welcome sign at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
David A. Grogen | CNBC

OMAHA, Nebraska — Berkshire Hathaway shareholders are getting more bang for their buck at this year’s meeting with the annual shopping event more interactive than ever.
The conglomerate’s yearly convention kicked off Friday with a shareholder-only shopping event, called the “Berkshire Bazaar of Bargains.” With over 20,000 square feet of showroom space at the CHI Health Center in downtown Omaha, the exhibit hall is offering goods from a myriad of the conglomerate’s holdings, including Warren Buffett-themed apparel from Brooks Sports and Berkshire chocolate coins from See’s Candies.

Buffett will take the stage 9am ET Saturday to address the most pressing issues investors face, including tariffs, the market volatility as well as the state of the economy. The 94-year-old investment legend will answer shareholder questions along with his designated successor, Greg Abel, and Berkshire’s insurance chief, Ajit Jain. The Q&A session will be broadcast exclusively on CNBC.
Plush Warren, Charlie and Omaha

Squishmallows in the images of Warren Buffett, Charlie Munger and Omaha at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Alex Harring | CNBC

The Squishmallow shopping display at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Yun Li | CNBC

The Squishmallow shopping display at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Yun Li | CNBC

Plush toy phenomenon Squishmallows once again stole the show. The ones modeled after the “Oracle of Omaha” and the late Charlie Munger became the biggest hits at the shopping event, as shareholders snapped up over 1,000 snuggly dolls per hour.
This year, Squishmallows also introduced a new limited-edition dog character called “Omaha.”

Squishmallow, Omaha, at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Alex Harring | CNBC

The Squishmallow shopping display at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Yun Li | CNBC

Berkshire inherited Squishmallows parent Jazwares through its acquisition of Alleghany in the fourth quarter of 2022. These squishy toys became an instant sensation during the pandemic partly thanks to celebrity endorsements. In 2022 alone, the firm sold a whopping 100 million Squishmallow units — with prices ranging from $5 to $30.
At the shopping event, the company put on display its newest product — pillows for both kids and adults —slated to launch this summer. Berkshire shareholders get to buy special edition pillow cases featuring Buffett and Munger’s cartoon figures.

One very special book

The Berkshire Hathaway 60th Anniversary book seen at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Yun Li | CNBC

The Berkshire Hathaway 60th Anniversary book seen at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Alex Harring | CNBC

Only one book is for sale at Berkshire’s book store Bookworm this year, 60 Years of Berkshire Hathaway, to commemorate the decades since Buffett took over what was then a failing Massachusetts textile company
Berkshire is selling 5,000 volumes of the limited edition book. Proceeds from an auction of copies signed by Buffett and author Carrie Sova will benefit the Stephen Center, a charity for homeless youth and adults in South Omaha.
Satisfying the sweet tooth

See’s Candies display at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
David A. Grogen | CNBC

See’s Candies, one of Berkshire’s most-iconic brands, had shelves of themed chocolate concoctions available for purchase.
Tied to the camping theme for this year’s meeting, See’s sold a box of toasted marshmallow-flavored chocolates. The box was adorned with an illustration of Buffett next to a campfire. Other items for sale included chocolate coins with wrappers embossed with Buffett’s face, as well as the company’s famous peanut brittle.
Room for dessert?

The Dairy Queen display at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
David A. Grogen | CNBC

Dairy Queen, which Berkshire Hathaway acquired in 1998, provided a sweet treat for attendees while they racked up steps at the bazaar. The ice cream chain’s Dilly Bars were sold for $1, while the Buster Bar went for $2.
Running shoes

The Brooks Running display at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
David A. Grogen | CNBC

Brooks Running shoes on display at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Alex Harring | CNBC

Brooks Running hats on display at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Alex Harring | CNBC

Long lines formed at Brooks Running as shareholders gravitated towards the 2025 special edition of its running shoes with special “Berkshire Hathaway” branding on the side and the insoles. Many shareholders are also set to participate in the Brooks “Invest in Yourself” 5K fun run and walk on Sunday, the morning following the annual meeting.
Live from Omaha

Signage at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Alex Harring | CNBC

Attendees waited in line to take photos in front of CNBC’s stage, where reporters like Mike Santoli and Becky Quick have been reporting. CNBC is the exclusive broadcaster for the meeting and has a livestream available online in English and Mandarin.
Claw Crane

The Pilot truck simulator seen at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Alex Harring | CNBC

Feeling lucky? New to the bonanza floor this year was a gigantic claw machine.
For $10, attendees could try their luck at scooping up prizes tied to several of Berkshire’s holding companies. Proceeds go to the Hope Center for Kids, an Omaha-based organization providing after-school and summer care for children.
Living the lavish life

The NetJets display at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
David A. Grogen | CNBC

NetJets, which Berkshire bought in 1998, took shareholders inside a private plane. The private jet operator also sold company-branded gear.
Getting it all home

Crowds at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Alex Harring | CNBC

Not enough space for plush toys, jewelry, running shoes and books in your carryon? AIT Worldwide Logistics has you covered. The shipper offered shoppers the service of having their purchases packed and sent home. It should be a popular service, with attendees seen lugging around Squishmallow bags that were equivalent in size to a child.

Bling-bling

A jewelry display from Borsheims is seen at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Yun Li | CNBC

A jewelry display from Borsheims is seen at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 2, 2025.
Yun Li | CNBC

About 14 miles away from the main convention center, there’s a separate shareholder-only shopping event at jewelry story Borsheims. Berkshire shareholders browsed through one-of-a-kind jewelry, engagement rings and watches available for purchase at a discount. This 24-carat black diamond necklace from Ruchi New York is selling for about $25,000. More