Stocks March 2, 2026

Berkshire Earnings Sink 30% as Greg Abel Leans on Apple for Long-Term Growth

Greg Abel stands against a backdrop of red financial charts, a -30% marker, and a rising AAPL ticker, with Buffett's shadow looming behind him

Berkshire Hathaway earnings fell sharply in Q4 2025, with operating profit dropping 30% to $10.2 billion from $14.53 billion a year prior. The Berkshire profit decline was driven largely by a 38% drop in insurance income and falling interest rates hitting returns on the company’s cash reserves.

For the full year, net income fell 24.7% to $66.97 billion, and Berkshire ended 2025 with $373.3 billion in cash. Greg Abel Berkshire’s new CEO, stepping in after Warren Buffett’s departure, now faces pressure to deploy that record cash pile while also steadying investor confidence in the post-Buffett era.

Berkshire Hathaway official Q4 2025 earnings release – Source: Berkshire Hathaway

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How Berkshire’s 30% Profit Decline Shapes Greg Abel’s Apple Strategy

Abel Signals No Rush to Sell Apple

In his first annual letter as CEO, Greg Abel made Berkshire’s position on the Berkshire Apple stake clear. He said investors should expect only “limited activity” in Berkshire’s four largest equity holdings, which include Apple, American Express, Coca-Cola, and Moody’s.

Abel stated:

“These businesses will compound over decades.”

Any changes to those positions, according to Abel, would only happen if there is a fundamental shift in a company’s long-term economic prospects.

Apple’s Numbers Back the Conviction

AAPL 5-year price chart vs. S&P 500, current price $264.18] – Source: MotleyFool

The Berkshire Apple stake is supported by strong fundamentals. Apple’s EPS grew 19% year over year in fiscal Q1, and its services segment posted a 75.4% gross margin for fiscal 2025, accounting for roughly 26% of total revenue. Berkshire Hathaway earnings from equity holdings, including Apple, helped partially offset the wider profit decline.

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Wall Street Agrees With Abel

Based on 27 analysts, Apple holds a Moderate Buy rating with an average 12-month price target of $307.55, representing a 16.42% upside from $264.18.

Apple stock moderate Buy consensus, $307.55 average price target – Source: TipRanks

Wedbush’s Daniel Ives reiterated a Buy at $350, while J.P. Morgan’s Samik Chatterjee kept his Buy at $325. Bernstein’s Mark Newman raised his target from $325 to $340.

Analyst table showing Ives, Chatterjee, Nispel, Newman Apple stock ratings — Analyst table showing Ives, Chatterjee, Nispel, Newman AAPL ratings – Source: TipRanks

The Greg Abel Berkshire strategy is clear: hold quality, let it compound, and wait for the right deployment window for that $373 billion cash reserve.

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