This year is inevitably going to be a different one from previous ones for Berkshire Hathaway (BRKA 0.20%)(BRKB 0.28%) as Warren Buffett is no longer at the helm. While new CEO Greg Abel, who took over at the start of the year, is maintaining the culture and keeping things largely as they were under Buffett, there likely will be some changes along the way. And while the business may still be in strong financial shape, it may have lost a bit of its luster.
It's been a sluggish start to the year for Berkshire, whose stock is down around 2% thus far. To make matters worse, the company also reported some underwhelming quarterly numbers recently. Is the stock destined to decline further this year, or can it be a good buy right now?
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Berkshire's earnings fell last quarter, but investors are likely focused on the new CEO
For the last three months of 2025, Berkshire's operating earnings totaled $10.2 billion, which were down around 30% from the $14.5 billion the company reported in the same period last year. The big drop was mainly due to its insurance business. However, when looking at the full year, the decline was not nearly as dramatic, with Berkshire's operating earnings totaling $44.5 billion versus $47.4 billion a year ago -- equating to a much more modest decline of 6%.
The underwhelming earnings numbers did lead to a slight decline in Berkshire's share price. However, the stock has remained fairly stable; over the past six months, its performance has been flat.
The bigger concerns are arguably to do with what happens with the company and its investments under the new leadership. However, in Abel's first letter to shareholders, the new CEO emphasized that the company will deploy the same approach and strategy to its investments as it did under Buffett. "We will assess value carefully, act patiently, and hold for the long term."
NYSE: BRKB
Key Data Points
Is Berkshire Hathaway still a good option for long-term investors?
Berkshire Hathaway stock currently trades at around 16 times its trailing earnings, which is modest in relation to the S&P 500 average of 25. This can be a good, safe-haven type of investment to hang on to, knowing that the company's focus is on relatively stable industries. At just over $1 trillion in market cap, Berkshire is a fairly large company today, and with an impressive track record, it can be a solid investment to hang on to.
Although Buffett is no longer leading the business, his principles remain ingrained in the company. Whether it's Abel or another person leading the company in the future, Berkshire's disciplined approach makes the stock a good value investment to buy and hold for the long term.
