Berkshire Hathaway (BRK.A, BRK.B) is set to report first-quarter earnings and host its annual shareholder meeting this Saturday, May 2, in what will be one of the most closely watched transitions in modern corporate history. The backdrop is unusually complex: the company is navigating its first major leadership shift in decades, with Greg Abel now firmly in the CEO seat while Warren Buffett steps back into a more limited role as chairman. At the same time, Berkshire is sitting on an enormous cash pile, has quietly resumed share buybacks, and appears to be reshaping portions of its equity portfolio . For investors, the focus is less about whether Berkshire will deliver a “beat” and more about what the next phase of the company looks like under new leadership—and what happens to the hundreds of billions of dollars sitting on the balance sheet.
Heading into the report, analysts expect operating earnings of roughly $11.1 billion, representing a modest sequential improvement from the prior quarter’s $10.2 billion but still within a range that reflects a more normalized earnings environment . That normalization is important, as Berkshire’s earnings power has been under pressure in recent quarters, particularly within its insurance operations. In the fourth quarter, operating earnings declined nearly 30% year-over-year, driven by a sharp drop in underwriting profits and a decline in insurance investment income. As a result, the first quarter will be closely scrutinized for signs that those pressures are stabilizing—or potentially worsening.
The insurance business remains the single most important driver to watch. Berkshire’s underwriting segment saw a steep decline last quarter, with profits falling more than 50% year-over-year, and analysts are looking for signs of improvement or at least stabilization. Premiums earned are expected to remain relatively flat, reflecting management’s continued focus on profitability over market share. Within that, GEICO will be a key focal point, as the auto insurer has been navigating a more competitive pricing environment alongside claims inflation and regulatory pressures. Insurance investment income is another critical variable, particularly as interest rate dynamics shift and impact returns on Berkshire’s massive fixed-income portfolio.
Beyond insurance, Berkshire’s diversified operating businesses will also be in focus. These include its railroad operations at BNSF Railway, its energy segment at Berkshire Hathaway Energy, and a wide range of industrial, consumer, and service businesses. While these segments tend to generate steady cash flow, growth has been modest, with analysts noting that organic profit expansion across non-insurance operations has been limited. That lack of growth, combined with heavy capital investment in recent years, has raised questions about Berkshire’s ability to drive incremental returns from its operating base.
Of course, the biggest storyline—and the one likely to dominate the annual meeting—is Berkshire’s massive cash position. As of the end of 2025, the company held approximately $373 billion in cash, cash equivalents, and short-term securities . While that number may have come down slightly following the resumption of share buybacks in the first quarter, it remains extraordinarily large and continues to be a source of both strength and frustration for investors. On one hand, the cash provides unparalleled flexibility and downside protection. On the other, it represents capital that is not currently generating meaningful returns in a market that has otherwise been strong.
Management has historically defended this cash position as a function of discipline—waiting for the right opportunity rather than forcing capital into suboptimal investments. But with the market near highs and Berkshire underperforming the broader indices over the past year, pressure is building for clearer guidance on how that cash will be deployed. Investors will be listening closely for any indication that Abel may take a more aggressive stance on acquisitions, equity investments, or capital returns.
That brings us to another key development: the resumption of share buybacks. Berkshire began repurchasing stock again in early March after a nearly two-year pause, signaling that management believes shares are trading below intrinsic value. While the buyback activity so far has been modest, the move is symbolically important, particularly as it reflects Abel’s approach to capital allocation. Historically, Buffett has been highly disciplined with buybacks, only stepping in when valuations were clearly attractive. Whether Abel adopts a more active stance—or maintains that same level of conservatism—will be a key question for investors.
Another area of focus will be Berkshire’s equity portfolio, which totals roughly $300 billion. Recent reports suggest the company may have sold as much as $15 billion in stocks during the first quarter, potentially tied to the departure of former investment manager Todd Combs . While Berkshire does not disclose which manager oversees specific holdings, there is speculation that positions in companies like Amazon, VeriSign, and Constellation Brands may have been reduced. These are generally smaller positions relative to Berkshire’s core holdings, but the potential portfolio reshuffling raises broader questions about strategy under Abel’s leadership.
Importantly, Berkshire remains heavily concentrated in a handful of large positions, with Apple continuing to represent its largest single investment. Buffett has previously highlighted the success of this position, noting that Berkshire has generated more than $100 billion in gains from its Apple stake. Any commentary around Apple—or broader portfolio positioning—will be closely watched as a signal of how the company is thinking about risk, diversification, and future opportunities.
The annual meeting itself adds another layer of intrigue. This will be the first “Woodstock for Capitalists” where Buffett is not the central figure on stage, with Abel taking the lead alongside key executives such as Ajit Jain, who oversees insurance operations. The tone and content of the meeting will matter, as investors look for reassurance that the company’s culture, discipline, and long-term orientation remain intact. At the same time, Abel’s communication style and strategic priorities will be under the microscope, particularly given the absence of Buffett’s well-known macro commentary.
Ultimately, the key questions for investors come down to capital allocation and execution. Can Abel demonstrate the same level of discipline and opportunism that defined Buffett’s tenure? Will Berkshire begin to deploy its cash more aggressively, or continue to wait for larger, more compelling opportunities? And can the company generate meaningful growth across its operating businesses in a more challenging macro environment?
The bottom line is that this weekend’s earnings report and annual meeting are less about the numbers and more about the narrative. The fundamentals will matter—particularly in insurance—but the real focus is on the future. With a massive cash pile, a reshuffling equity portfolio, and a new CEO at the helm, Berkshire Hathaway is entering a new era. Investors aren’t just looking for results—they’re looking for direction.