Berkshire Hathaway (BRK.B) (BRK.A) stock slipped in premarket trading on Monday after the Warren Buffett-led company reported a drop in operating profit and its cash pile fell compared to the previous quarter.

Economic uncertainty driven by U.S. President Donald Trump’s tariff policy has impacted many of Berkshire’s subsidiaries, which range from insurers and ice cream makers to a utility and a railroad.

“The pace of changes in these events, including tensions from developing international trade policies and tariffs, accelerated through the first six months of 2025,” Berkshire said

The conglomerate’s second-quarter operating income declined to $11.16 billion, or about $7,760 per Class A share, from $11.6 billion a year earlier, with $877 million of currency losses amid the weakening of the U.S. dollar.

The company reported a 12% decline in quarterly earnings in its insurance underwriting business, primarily due to tepid earnings from its reinsurance businesses and certain smaller insurance operations.

Its insurance business Geico saw a 2% increase in pre-tax underwriting profit, aided by a 5% rise in premiums, which helped offset a smaller rise in accident losses.

Retail sentiment on Stocktwits about Berkshire was in the 'neutral' territory at the time of writing.

Berkshire's cash reserves dipped slightly to $344.1 billion from $348 billion in late March. For the eleventh consecutive quarter, Berkshire was a net seller of stocks, divesting $4.5 billion in equities during the first half of 2025.

The conglomerate did not buy back any shares in the first half of 2025 despite a drop in its share prices after Buffett's announcement that he would step down as CEO by the end of the year. The company also booked an after-tax charge of $3.8 billion related to its stake in Kraft Heinz.

Some retail traders were disappointed with the earnings, while others wondered about the Oracle of Omaha’s final moves before he departed from his current role.

“I think earnings have more negative than positive, so likely this drops, but this will stabilize once they deploy some cash. They see something the market doesn't,” one user said.

Berkshire stock has gained 3.7% this year compared to a 6.3% rise in the S&P 500 index.

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