Berkshire Earnings Climb as Abel Starts Spending Buffett's Cash
Berkshire Hathaway posted stronger quarterly earnings as new CEO Greg Abel begins deploying the company's legendary cash reserves.
Berkshire Hathaway is showing it doesn't need Warren Buffett at the controls to keep making money. The conglomerate's earnings rose last quarter, powered by solid performances across its energy, railroad, and manufacturing divisions — the kind of old-economy muscle that built Buffett's empire in the first place.
The insurance segment was the one soft spot, dragging slightly on overall results. But the rest of the business more than picked up the slack, giving new CEO Greg Abel a clean platform to work from as he steps fully into the role Buffett held for decades.
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Here's the real headline for traders and investors: Abel is starting to put Berkshire's monster cash hoard to work. That pile has been the elephant in the room for years — critics called it lazy capital, bulls called it dry powder. Now it looks like Abel is leaning toward deployer, not hoarder.
Watch this space. If Abel accelerates dealmaking, Berkshire's stock could reprice as the market assigns a premium to active capital allocation rather than a discount for cash sitting on the sidelines. The energy and rail segments give him a stable earnings base to swing from. How aggressive he gets — and where he targets — is the story for the rest of 2025.
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