A diversified conglomerate offering stability through massive cash reserves, a fortress balance sheet, and ownership of world-class subsidiaries like GEICO and BNSF Railway.
Investors should consider Berkshire Hathaway as a defensive anchor portfolio holding that offers protection against market volatility through its deep cash reserves and high-quality assets. The company's consistent ability to generate free cash flow and return capital to shareholders via buybacks or dividends makes it an attractive long-term compounder.
The recent decline in net income from $97.15B in 2023 to $67.26B in 2025 may signal margin compression or increased investment losses that could persist. Additionally, the massive accumulated other comprehensive income loss of $-2.45B indicates significant unrealized losses in the equity portfolio that could reverse if market conditions deteriorate further.
Berkshire Hathaway Inc. is a multinational conglomerate holding company with diverse operations including insurance services, freight rail transportation, energy generation, manufacturing, and retailing across global markets.
The company reported a net profit of $67.26B in 2025, showing a slight moderation from the previous year's $89.56B but maintaining robust operational profitability with an operating profit of $82.46B. Despite significant capital expenditures of $20.93B for growth initiatives, net cash increased by $4.19B to end at $52.57B, reflecting strong cash flow from operations of $45.97B.
The conglomerate operates across a wide array of industries including property and casualty insurance, energy production, and transportation services where it benefits from scale and regulatory moats. The broader industrial landscape is currently navigating inflationary pressures and supply chain realignments which favor companies with the financial flexibility to invest in efficiency.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $302.09B | $364.48B | $371.43B | $371.44B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $302.09B | $364.48B | $371.43B | $371.44B |
| Operating Expenses | $332.67B | $244.32B | $261.06B | $288.99B |
| Operating Income | $-30.58B | $120.17B | $110.38B | $82.46B |
| D&A | $10.90B | $12.49B | $12.86B | $13.48B |
| Depreciation | $8.46B | — | — | — |
| Amortization | $1.23B | $1.83B | $1.80B | $1.70B |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $4.35B | $5.00B | $5.20B | $5.07B |
| Pre-Tax Income | $-30.58B | $120.17B | $110.38B | $82.46B |
| Income Tax | $-8.52B | $23.02B | $20.82B | $15.20B |
| Continuing Ops | $-22.06B | $97.15B | $89.56B | $67.26B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-22.06B | $97.15B | $89.56B | $67.26B |
| Minority Interest | $761.0M | $924.0M | $566.0M | $292.0M |
| Net to Common | $-22.82B | $96.22B | $89.00B | $66.97B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Inventory | $25.37B | $24.16B | $24.01B | $24.42B |
| Goodwill | $78.12B | $84.63B | $83.88B | $83.07B |
| Operating Leases | $4.97B | $5.28B | $5.84B | $6.02B |
| Total Assets | $948.45B | $1.07T | $1.15T | $1.22T |
| Total Liabilities | $467.83B | $499.21B | $502.23B | $502.47B |
| Shareholders' Equity | $480.62B | $570.77B | $651.65B | $719.70B |
| Retained Earnings | $511.60B | $607.35B | $696.22B | $763.19B |
| AOCI | $-6.59B | $-3.76B | $-3.58B | $-2.45B |
| Treasury Stock | $67.83B | $76.80B | $78.94B | $78.94B |
| Total L&E | $948.45B | $1.07T | $1.15T | $1.22T |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-22.06B | $97.15B | $89.56B | $67.26B |
| Non-Cash Adjustments | $53.48B | $-71.72B | $-50.65B | $-29.53B |
| Working Capital Changes | $5.80B | $23.77B | $-8.32B | $8.24B |
| Cash from Operations | $37.22B | $49.20B | $30.59B | $45.97B |
| Capital Expenditures | $15.46B | $19.41B | $18.98B | $20.93B |
| Cash from Investing | $-87.60B | $-32.66B | $-10.29B | $-44.49B |
| Share Buybacks | $7.85B | $9.17B | $2.92B | — |
| Cash from Financing | $-1.66B | $-14.40B | $-10.36B | $2.23B |
| FX Effect | $-268.0M | $116.0M | $-212.0M | $478.0M |
| Net Change in Cash | $-52.31B | $2.24B | $9.73B | $4.19B |
| Beginning Cash | $88.71B | $36.40B | $38.64B | $48.38B |
| Ending Cash | $36.40B | $38.64B | $48.38B | $52.57B |
The company operates primarily through three segments: Insurance Services (GEICO, General Re), Manufacturing & Retailing (BNSF Railway, Dairy Queen, Duracell, Lubrizol), and Energy (Berkshire Hathaway Energy).
1. Concentration risk in specific large-cap stock holdings within the investment portfolio. 2. Regulatory headwinds affecting the insurance underwriting margins and capital requirements. 3. Exposure to extreme weather events impacting energy generation assets and rail infrastructure.
1. Unmatched liquidity with over $52B in cash and equivalents providing downside protection during market crashes. 2. Proprietary underwriting expertise in the insurance sector generating consistent float and high returns on equity. 3. A decentralized management structure that allows subsidiaries significant autonomy while maintaining strict capital allocation discipline.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.