Berkshire Hathaway’s stock slump has actually accelerated as its shares have fallen about 12% since Warren Buffett decided he will retire in May 2025. The Buffett retirement effect has triggered sustained selling while the Q2 2025 earnings report revealed operating profits fell 4% to $11.2 billion. Berkshire cash reserves drop by $4 billion to $344 billion as the company sold $3 billion more stocks than purchased, continuing its Warren buffet stock strategy of net selling for 11 consecutive quarters.
Berkshire Stock Slump Linked to Buffett Exit, Q2 Earnings, Cash Cuts
The crash of the Berkshire Hathaway stock further worsened after Buffett announced his unexpected sudden retirement during the May shareholders meeting. On May 3rd, the company poured 12 percent declining in stock price and the S&P 500 rose by 10 percent, displaying investor nervousness over the Warren Buffett-free future.
Cathy Seifert, CFRA Research analyst, said:
“This was probably a very tough decision for him, but better to leave on your own terms.”
The 2025 Q2 report on earnings results was also dismal at best, as the operating profits declined by about 4% to a value of 11.2 billion. The company took a $3.8 billion writedown on Kraft Heinz, slashing the stake to $8.4 billion.
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Cash Strategy Remains Defensive
Berkshire cash reserves drop from $348 billion to $344 billion during the quarter. The Warren buffet stock strategy of cautious deployment continues with zero buybacks since May 2024. For the 11th straight quarter, the company sold $3 billion more stocks than purchased.
Brian Meredith, UBS analyst, also said that:
“Buffett leaves a company that is less reliant on his investing capabilities, with an array of leading businesses with strong cash flows.”
Also Read: Warren Buffett Retires: Berkshire’s Next Move Could Shake Markets