Berkshire Hathaway (BRK.A) Plunges 3.19% Amid Buffett's Trade Criticism

On May 5, 2025, Berkshire Hathaway's stock experienced a 3.19% decline in pre-market trading, marking a significant drop for the company.

Warren Buffett, the CEO of Berkshire Hathaway, has been vocal about his concerns regarding the U.S. government's trade policies. During the company's annual shareholder meeting, Buffett criticized the use of tariffs as a weapon in international trade, stating that such actions are a "major mistake." He emphasized the importance of free trade and warned that protectionist policies could have long-term negative impacts on the U.S. economy.

In addition to his comments on trade, Buffett announced that he will step down as the CEO of Berkshire Hathaway at the end of 2025. He recommended Greg Abel, the current vice chairman, to succeed him. This transition marks the end of an era for Berkshire Hathaway, as Buffett has been at the helm for over 60 years. Abel, who has been with the company since 1992 and has extensive experience in its operations, is expected to continue the company's legacy.

Berkshire Hathaway's first-quarter earnings for 2025 were disappointing, with operating income down 14% year-over-year. This decline was primarily driven by a 50% drop in insurance-underwriting income. Despite these challenges, Buffett remains optimistic about the company's future and has no plans to sell any of his shares during the transition period.