Berkshire Hathaway Inc. (NYSE:BRK) unveiled a leadership transition plan as Gregory E. Abel steps into the role of CEO and promises to maintain the conglomerate’s long-standing culture and capital discipline.
“Warren is obviously a very difficult act to follow,” says Abel wrote in the company’s annual report.
Revenue snapshot
Fourth quarter operating income was $10.2 billion, down 29.8% from $14.56 billion in the same period a year earlier.
For the full year 2025, operating revenues were $44.49 billion, compared to $47.44 billion in the prior year.
Cash positions fell to $373.3 billion from $381.6 billion in the third quarter, despite no share buybacks, according to a CNBC report report.
As of December 31, 2025, Berkshire Hathaway’s stock portfolio remained highly concentrated, with five companies:
In addition, the company owns Occidental common stock.
“As of December 31, 2025, our investment in Western preferred stock had a total liquidation value of approximately $8.5 billion,” Berkshire said. “To date, Occidental has returned approximately $1.5 billion of its total liquidation value as a result of excess distributions, as defined in the terms of the Occidental preferred stock certificate of designation, to its common stockholders.”
Focus on Japan
In its 2025 annual report, the company highlighted its stake in five Japanese trading companies that generate significant dividends and global reach.
Berkshire owns shares in trading giants, including Mitsubishi company, Itochu Corporation, Mitsui & Co., Ltd., Marubeni Corporationn and Sumitomo Corporation.
These companies are active in the energy, logistics, raw materials and consumer sectors.
Berkshire has borrowed in Japan an amount approximately equal to the yen invested (cost basis), at an average cost of 1.2%, with a weighted average life of approximately 5.75 years.
Adding these positions together, they totaled $194 billion in market value at year end, representing nearly two-thirds of the $297.8 billion equity portfolio, yielding combined dividends of $2.5 billion and yielding 10% on the original cost base of $24.5 billion.
Market movements show that investors have responded positively. Shares of Japanese trading houses have risen after Berkshire showed continued support and possible expansion of its holdings.
The focus on Japan complements Berkshire’s domestic and global interests.
Abel says insurance remains a core activity
Abel reminded investors that Berkshire’s insurance business remains its financial engine.
He emphasized disciplined underwriting and long-term thinking as central pillars. He also reiterated that integrity remains non-negotiable, citing Buffett’s 1991 warning: “Lose money for the company, and I will be understanding; lose an ounce of reputation for the company, and I will be ruthless.”
Berkshire ended 2025 with more than $370 billion in cash and government bonds.
Abel called the balance sheet a strategic advantage during volatile markets. He said management prefers buying productive companies over holding government debt.
“Our approach to cash dividends remains that Berkshire will not pay dividends as long as more than one dollar of market value for shareholders will reasonably be created by each dollar of retained earnings,” Abel wrote.
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