{"id":1045,"date":"2026-03-05T12:31:20","date_gmt":"2026-03-05T12:31:20","guid":{"rendered":"https:\/\/www.sterlingcooper.info\/blog\/?p=1045"},"modified":"2026-03-05T12:31:42","modified_gmt":"2026-03-05T12:31:42","slug":"berkshire-hathaway-looks-like-it-appointed-a-dork-as-the-new-ceo-apparently-only-has-excuses-and-no-dividends-or-great-acquisitions-for-its-cash-pile","status":"publish","type":"post","link":"https:\/\/www.sterlingcooper.info\/blog\/berkshire-hathaway-looks-like-it-appointed-a-dork-as-the-new-ceo-apparently-only-has-excuses-and-no-dividends-or-great-acquisitions-for-its-cash-pile\/","title":{"rendered":"BERKSHIRE HATHAWAY LOOKS LIKE IT APPOINTED A DORK AS THE NEW CEO…APPARENTLY ONLY HAS EXCUSES AND NO DIVIDENDS OR GREAT ACQUISITIONS FOR ITS CASH PILE!"},"content":{"rendered":"

Berkshire Hathaway<\/strong>\u00a0is in a rare position. Although it is typically regarded as one of the most stable stocks, given the current market conditions, no stock is infallible.<\/p>\n

Now it is simply a “has been” and traded at 16x earnings, a very poor performance when TESLA trades at 330x.<\/p>\n

WAKE UP GREG ABLE (UNABLE) !!!!!<\/p>\n

The company failed to wow investors with its most recent set of earnings, falling short of expectations. And the latest stockholder letter didn’t help.<\/p>\n

New CEO Greg Abel<\/strong>,\u00a0penning his first shareholder letter<\/a>, struck a very cautious tone but made one thing crystal clear. Berkshire isn\u2019t in any mood to waste money. The investment company is sitting on a huge cash pile, but that is not something up for grabs.<\/p>\n

\u201cWhile some of this capital is required to support our insurance operations and protect Berkshire against extreme scenarios, it also constitutes our dry powder,\u201d Abel wrote.<\/p>\n

At the same time, Abel saw the need for a conciliatory tone. He said the company is not shying away from deal-making.<\/p>\n

\u201cMany times in Berkshire\u2019s history, some observers have suggested that our substantial cash position signals a retreat from investing. It does not.\u201d<\/p>\n

However, investors continue to ask the same questions they have had for years.\u00a0When does that \u201cdry powder\u201d actually get deployed?<\/strong>\u00a0More importantly,\u00a0what happens if it doesn\u2019t?<\/strong><\/p>\n

DRY POWDER IS NO EXCUSE TO NOT PAY DIVIDENDS FOR 60 YEARS!!!<\/p>\n

The market\u2019s initial reaction was blunt. <\/strong>Berkshire’s Class A shares fell by as much as 5.3%, and Class B shares fell by about the same amount. This was the biggest drop since\u00a0Warren Buffett<\/a>\u00a0said in May 2025 that Abel would become CEO in 2026.<\/p>\n

Operating profit, BRK drop as insurance and key businesses show pressure<\/h2>\n

Berkshire\u2019s operating profit for the fourth quarter fell 30% to $10.2 billion. (Operating profit excludes gains and losses from Berkshire\u2019s stock holdings, including Apple, and is often the cleanest snapshot of how the underlying businesses performed.)<\/p>\n

Insurance, unfortunately, is the main pressure point.<\/p>\n

Berkshire said Geico, alongside other insurance companies, posted a\u00a038% overall decline<\/strong>.<\/p>\n

The worst part is that Abel believes the pattern is not going to break. Instead, the insurance companies will repeatedly come under pressure to retain customers as competitors cut rates.<\/p>\n

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