Story perspectives

Berkshire Shares Plunge 10.8%, Cuts Stock, Holds Record Treasurys

5/5/2026

Summary

Berkshire Shares Plunge

Berkshire Hathaway shares fell 10.8% in Omaha, the sharpest drop since March 2000, while CEO Greg Abel addressed shareholders.
The firm cut stock holdings by $8.1 billion in Q1, boosting cash to $397 billion—about 32% of assets—and holding nearly $400 billion in U.S. Treasurys, a record level.
Berkshire’s AI exposure centers on Apple, a stake that has been rapidly reduced since 2024.

Summary

Berkshire Earnings Surge

Operating earnings rose 18% year-over-year and insurance underwriting climbed 28.5% to $1.7 billion.
Analysts said the $235 million Q1 share buyback was modest and fell short of investor hopes.
Cash increased to $397 billion—$58 billion cash and $339 billion Treasury Bills—up from $373 billion.
The meeting honored Buffett’s 60-year and Munger’s 45-year tenures with jerseys while Abel was flanked by Ajit Jain (vice chairman, insurance), Adam Johnson (president, consumer products) and Katie Farmer (CEO, BNSF).

History

Historical Context

During the 2008 financial crisis Berkshire Hathaway, led by Warren Buffett, bought $5 billion of preferred stock in Goldman Sachs and piled into U.S. Treasury securities, a defensive stance that emphasized liquidity. That approach foreshadowed the conglomerate’s later cash build-up to roughly $381.7 billion (as reported in its filings), underscoring the lasting influence of the crisis-era strategy.

1 of 3

Berkshire Shares Plunge

Berkshire Hathaway shares fell 10.8% in Omaha, the sharpest drop since March 2000, while CEO Greg Abel addressed shareholders.
The firm cut stock holdings by $8.1 billion in Q1, boosting cash to $397 billion—about 32% of assets—and holding nearly $400 billion in U.S. Treasurys, a record level.
Berkshire’s AI exposure centers on Apple, a stake that has been rapidly reduced since 2024.

1 / 3