Month: May 2025

Categories
Brooks

Brooks Running Sets the Pace with Record-Breaking Q1 Performance

(BRK.A), (BRK.B)

Berkshire Hathaway-owned Brooks Running posted a record-breaking first quarter in 2025, with global revenue climbing 15% year-over-year. All regions contributed double-digit growth or better, marking a strong start to the year for the performance running brand.

In North America, Brooks continued its eight-year growth streak, with Q1 revenue rising 13% and an impressive 38% surge in Canada. Internationally, the brand saw record quarterly revenue in the Europe, Middle East, and Africa (EMEA) region, up 11% on a currency-neutral basis, and a staggering 221% year-over-year growth in Asia Pacific and Latin America (APLA).

Brooks also claimed the top spot in the U.S. adult performance running footwear market, with seven of the top 25 best-selling styles. In the highly competitive U.S. specialty retail channel, Brooks grew 20% year-over-year. The brand saw notable success in Europe as well, with Q1 growth of 37% in France and 28% in Germany for adult running shoes priced above €90. In Germany, Brooks reached a milestone by tying for No. 1 in the high-end running footwear segment—a first in any European market.

“Our record results are an outcome of real product innovation, brand demand at an all-time high, and execution excellence across our teams,” said CEO Dan Sheridan. “I am so proud of the Brooks team and the strategy we’re executing to invite more people into the brand.”

© 2025 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Corporate

Buffett Explains Berkshire’s Buyback Pause

(BRK.A), (BRK.B)

At Saturday’s Berkshire Hathaway annual meeting, Warren Buffett addressed the company’s noticeable pause in share repurchases. Berkshire hasn’t bought back any stock since May 2024, marking its longest break from buybacks since 2018. Buffett explained that the company only repurchases shares when they are clearly undervalued—a condition not currently met, with Berkshire stock reaching an all-time high on May 2. He also cited the new 1% tax on repurchases as an added hurdle, making buybacks less appealing from a capital allocation standpoint.

© 2025 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Commentary

Greg Abel, the Right Man for All of Berkshire’s Seasons

(BRK.A), (BRK.B)

Greg Abel, long-time Berkshire Hathaway executive and current vice chairman of non-insurance operations, is set to take the reins as CEO by year’s end. At 62, Abel brings two decades of steady leadership, having risen through the ranks since Berkshire acquired MidAmerican Energy. He’s earned a reputation as a tireless and capable operator, overseeing not just Berkshire Hathaway Energy, but also a vast portfolio that includes BNSF Railway, NetJets, and Duracell. Despite his growing influence, Abel remains grounded—still based in Des Moines and proud of coaching his kids’ sports teams. With a background in accounting and a clear eye for value, he’s well-equipped to steer Berkshire through complex, high-stakes acquisitions that match the scale of the trillion-dollar conglomerate. Humble, analytical, and deeply aligned with Berkshire’s principles, Greg Abel isn’t just a good choice to succeed Warren Buffett—he’s an excellent one.

© 2025 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Financials

Berkshire Hathaway’s Q1 Profits Fall, But Core Businesses Stay Strong

(BRK.A), (BRK.B)

Berkshire Hathaway, the giant conglomerate led by Warren Buffett, reported lower profits in the first quarter of 2025, mainly due to fluctuations in its stock investments. The company posted $4.6 billion in net earnings—down sharply from $12.7 billion during the same period last year.

But the drop doesn’t tell the whole story. Much of it stems from accounting rules that require Berkshire to include paper losses on stocks it hasn’t sold yet. This quarter, those unrealized losses totaled about $7.4 billion.

To give a clearer picture of business performance, Berkshire also reports “operating earnings,” which leave out those investment swings. On that front, the company earned $9.6 billion in Q1—still strong, but slightly below the $11.2 billion it earned a year ago.

Some business highlights:

Insurance operations had mixed results, with investment income rising but underwriting profits falling.

The company’s railroad, BNSF, and energy division both posted solid gains.

Insurance float—a key financial cushion built from premiums Berkshire holds before paying claims—grew to $173 billion.

Earnings per share also reflected the dip: Class A shares earned $3,200 in Q1, compared to $8,825 last year, while Class B shares earned $2.13, down from $5.88.

Berkshire reminded investors that quarterly investment gains and losses don’t always reflect the company’s true strength. Long-term performance and solid fundamentals remain the real story.

© 2025 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Categories
Financial Reports

Berkshire Hathaway Shares Hit Record High Ahead of Annual Meeting

(BRK.A), (BRK.B)

Excitement is in the air as Berkshire Hathaway shareholders flock to Omaha for the company’s annual meeting on May 3. The mood is especially upbeat with the stock hitting record highs—Class A shares closed Friday at $809,808.50, and Class B shares reached $539.80.

The annual meeting, often called “Woodstock for Capitalists,” will feature Berkshire’s first-quarter earnings release and a Q&A session with CEO Warren Buffett, along with top executives Greg Abel and Ajit Jain, offering insights into the company’s future.

This year’s event is also a time for reflection, marking the second annual meeting without Charlie Munger, Buffett’s longtime business partner. Though gone, Munger’s influence and wisdom remain deeply woven into Berkshire’s culture.

© 2025 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.