Berkshire Hathaway reported a 4% decline in operating profit for the second quarter of 2025. This performance reflects broader economic pressures, with Warren Buffett highlighting the impact of ongoing tariffs on the conglomerate’s diverse range of businesses.

During the quarter, Berkshire’s net earnings attributable to shareholders fell sharply compared to the same period last year. Investment gains also dropped substantially, mirroring recent market volatility and heightened uncertainty caused by tariff policy shifts. The turbulence was intensified when sudden tariff announcements set off significant swings in the stock market, briefly pushing the S&P 500 close to bear market territory before it rebounded to new highs.

Despite these conditions, Berkshire maintained a cautious investment approach. The company was a net seller of stocks for the 11th consecutive quarter, selling off more than it purchased, and continued to avoid major buyouts or large new stock positions. This conservative stance reflects Buffett’s ongoing concern about the lack of attractive investment opportunities at current valuations, especially as geopolitical tensions and trade uncertainties make the market environment challenging.

Berkshire’s cash reserves continued to grow, reaching a record level of $344 billion by the end of June, up from $333 billion at the end of March. Notably, the company refrained from stock buybacks during the quarter, a move that further underscores its cautious outlook.

Buffett has cautioned investors about the ripple effects of tariffs, noting that these trade barriers have raised costs across many Berkshire-owned businesses and squeezed profit margins. As the macroeconomic landscape remains uncertain, Buffett’s message suggests that patience and close attention to risk remain central to Berkshire Hathaway’s strategy for navigating turbulent market conditions.