CORRECTING and REPLACING Berkshire Hathaway Inc. News Release
First paragraph under second table, second sentence should read: At June 30, 2025, insurance float (the net liabilities we assume under insurance contracts) was approximately $174 billion, an increase of $3 billion since yearend 2024 (instead of At June 30, 2024, insurance float (the net liabilities we assume under insurance contracts) was approximately $174 billion, an increase of $3 billion since yearend 2024.)
The updated release reads:
BERKSHIRE HATHAWAY INC. NEWS RELEASE
Berkshire Hathaway Inc. (BRK.A; BRK.B) –
Berkshire's operating results for the second quarter and first six months of 2025 and 2024 are summarized in the following paragraphs. However, we urge investors and reporters to read our 10-Q, which has been posted at www.berkshirehathaway.com. The limited information that follows in this press release is not adequate for making an informed investment judgment.
Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the second quarter and first six months of 2025 and 2024 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).
Generally Accepted Accounting Principles ('GAAP') require that we include the changes in unrealized gains (losses) of our equity security investments as a component of investment gains (losses) in our earnings statements. In the table above, investment gains (losses) in 2025 include gains of $1.5 billion in the second quarter and losses of $5.9 billion in the first six months and in 2024 include losses of $28.2 billion in the second quarter and $37.9 billion in the first six months due to changes during the second quarter and the first six months in the unrealized gains that existed in our equity security investment holdings. Investment gains (losses) in 2025 also include after-tax realized gains of $4.2 billion in the second quarter and $6.6 billion in the first six months and in 2024 include after-tax realized gains on sales of investments of $47.0 billion in the second quarter and $58.2 billion in the first six months.
The amount of investment gains (losses) in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules.
An analysis of Berkshire's operating earnings follows (dollar amounts are in millions).
On June 30, 2025, there were 1,438,223 Class A equivalent shares outstanding. At June 30, 2025, insurance float (the net liabilities we assume under insurance contracts) was approximately $174 billion, an increase of $3 billion since yearend 2024.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures in accordance with Regulation G are included herein.
Berkshire presents its results in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire's financial information. That presentation includes the use of certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment gains (losses), impairments of goodwill and intangible assets and other-than-temporary impairments of equity method investments.
Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of Berkshire's operations, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, as previously described, under applicable GAAP accounting requirements, we are required to include the changes in unrealized gains (losses) of our equity security investments as a component of investment gains (losses) in our periodic earnings statements. In sum, investment gains (losses) for any particular period are not indicative of quarterly business performance.
About Berkshire
Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.
Cautionary Statement
Certain statements contained in this press release are 'forward looking' statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.
View source version on businesswire.com:https://www.businesswire.com/news/home/20250802636991/en/
CONTACT: Marc D. Hamburg
402-346-1400
KEYWORD: UNITED STATES NORTH AMERICA NEBRASKA
INDUSTRY KEYWORD: RESIDENTIAL BUILDING & REAL ESTATE RETAIL CONSTRUCTION & PROPERTY ENERGY MANUFACTURING INSURANCE FINANCE PROFESSIONAL SERVICES RAIL AIR TRANSPORT OTHER MANUFACTURING OTHER ENERGY FOOD/BEVERAGE UTILITIES FASHION
SOURCE: Berkshire Hathaway Inc.
Copyright Business Wire 2025.
PUB: 08/02/2025 11:48 AM/DISC: 08/02/2025 11:48 AM
http://www.businesswire.com/news/home/20250802636991/en
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
34 minutes ago
- Yahoo
Apple might be building its own AI ‘answer engine'
Apple has formed a new team to build a ChatGPT-like app, according to according to Bloomberg's Mark Gurman. This team — reportedly called Answers, Knowledge, and Information — is working to build an 'answer engine' that can respond to questions using information from across the web. This could be a standalone app or provide search capabilities in Siri, Safari, and other Apple products. Gurman also notes that Apple is advertising for jobs with this team, specifically looking for applicants who have experience with search algorithms and engine development. While Apple has already integrated ChatGPT into Siri, a more personalized, AI-powered update to the voice assistant has been repeatedly delayed. Apple might also have to alter its search deal with Google as a result of the latter company's antitrust defeat. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
34 minutes ago
- Yahoo
Suze Orman: 4 Tips To Protect Your Finances in Retirement
Retirement is often viewed with anticipation for many Americans. The daily grind at the office is replaced with thoughts of travel or enjoying hobbies you rarely had time for in your working days. Check Out: Read Next: Unfortunately, financial realities can make those wishes difficult to enjoy, especially in a time where the economy is fraught with uncertainty. In a recent article on her website, personal finance expert Suze Orman shared things retirees must do to protect their finances. Here are four things Orman advised to safeguard your money in retirement. Don't Make Rash Decisions with Your Investment Portfolio The stock market has been full of upheaval in 2025. A key driver to the chaos was President Trump's Liberation Day for tariffs. The S&P 500, for example, was down nearly 19% from recent highs, representing a loss of over $9 trillion in market value, according to CNN. Selling stock holdings during a pullback is understandable, but emotional decisions can betray long-term goals. 'I hope you resisted any urge to sell stock holdings during the worst of the market declines earlier this year. Once you lock in lower values, you can't easily make them up,' said Orman. Locking in losses can be particularly troubling for retirees with limited means to recoup losses, especially for people on fixed incomes. Suze Orman: Reanalyze Your Portfolio It's easy for an investment portfolio to get unaligned during market upheaval. It's best for retirees to review their portfolio at least annually, or when a position has a wild swing, according to Fidelity. Movement this year provides a good opportunity to do this. 'It's also an opportunity to recalibrate your investment strategy,' noted Orman of the stock market in 2025. Retirees may want to decide if they need to make changes or change their overall approach to their portfolio. 'If you were anxious during the market sell-off in the first half of the year, now is a good time to think through whether it is indeed time to reduce your overall allocation to stocks,' added Orman. It's often best to do this with a trusted financial advisor to ensure decisions are in your best interest. Have Enough Cash on Hand A common headwind many retirees face is not having a paycheck come in monthly. This makes having ample cash on hand necessary to face challenges like healthcare costs or other emergencies. Orman broke this down to two categories for retirees: living expenses and emergency funds. Current market upswings may be a good time for retirees to make calculated sales to increase cash on hand. 'If you are already retired, I hope you have at least two to three years of living costs in cash. That's how you ride out the next wave of market volatility, and the one after that,' said Orman. This will help retirees avoid selling during future downturns. That's only half of the cash equation, though. 'This cash is in addition to the eight months to one year of living costs you should have to cover emergency savings,' noted Orman. It's best to house all of these funds in a high-yield savings account to maximize interest-earning possibilities. Plan Filing for Social Security Benefits Wisely Taking Social Security benefits as soon as possible is understandable, especially in light of concerns of insolvency. Receiving benefits early can be detrimental, though, as it can lead to receiving significantly less. 'At your full retirement age (age 67 for everyone born in 1960 or later) your benefit will be 30% larger than if you start at age 62. Moreover, if you wait all the way until you turn 70, your benefit will be 76% higher than if you start at age 62,' Orman said in a recent article on her website. Filing for Social Security benefits is a personal decision, so plan for when it's best for you without hindering your long-term goals. Protecting finances in retirement is of utmost importance. You don't want to outlive your savings. Wise planning protects against that and avails retirees more opportunities to live the life they want. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 How Much Money Is Needed To Be Considered Middle Class in Your State? 10 Used Cars That Will Last Longer Than the Average New Vehicle This article originally appeared on Suze Orman: 4 Tips To Protect Your Finances in Retirement Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
34 minutes ago
- Yahoo
Thinking About a HELOC in 2025? Here's What Lenders Are Looking For
A home equity line of credit (HELOC) can be a powerful tool for homeowners — offering flexible access to your home's equity and a revolving line of credit that can be used for renovations, debt consolidation, education, or just about anything else. But before you start planning how to spend the funds, you'll need to make sure you qualify. Lenders aren't handing out HELOCs to just anyone. They have a list of requirements you'll need to meet in 2025 — and they're not just looking at your house. Your credit score, income, equity, and overall financial health all play a role. Here, we'll walk you through the updated HELOC requirements for 2025, what documentation you'll need, and expert tips to help you secure the best possible terms. What Is a HELOC? A HELOC — short for home equity line of credit — is a loan that lets you borrow against the equity you've built up in your home. It works differently from a traditional loan. Instead of receiving a lump sum, you're given a revolving line of credit that you can draw from as needed during a set period (usually 10 years). After that, you enter the repayment period — typically lasting 10 to 20 years — when you'll need to start repaying both principal and interest. HELOCs are popular because they're flexible, and you only pay interest on what you actually borrow. If you have a $300,000 home with a $150,000 mortgage balance, you have $150,000 in equity. Lenders may let you borrow up to 80% of that amount, or $120,000 in this case — but only if you meet a strict set of criteria. What Are the HELOC Requirements for 2025? HELOC lenders want to make sure you're a safe bet before they issue a line of credit. That means proving you're financially stable, have a good credit history, and enough equity built up in your home. While exact criteria vary slightly by lender, the following requirements are standard across most institutions in 2025. You'll Need 15%–20% Equity in Your Home Equity is one of the first things lenders look at. In 2025, most lenders require homeowners to have at least 15% to 20% equity in their property before they'll issue a HELOC. Equity is simply the value of your home minus the amount you still owe on your mortgage. So if your home is worth $400,000 and your remaining mortgage is $280,000, you have $120,000 in equity — or 30%. That puts you in a strong position. But if your equity is under 15%, you'll likely be denied. Keep in mind: even if you meet the minimum equity requirement, the lender won't let you borrow all of it. Most cap HELOCs at 80% of your total equity, which adds another layer of risk protection for the lender. A Minimum Credit Score of 620 (Ideally Higher) Credit score is another big piece of the puzzle. Most lenders in 2025 require a minimum score of 620 to qualify for a HELOC, though some want to see 680 or higher — especially for larger credit lines or more competitive interest rates. Tim Gordon, a San Diego-based real estate investor who has used HELOCs for property renovations, says, "If your score is hovering just above 620, you may still get approved, but expect higher rates and more scrutiny." A strong score shows lenders that you're responsible with debt — paying on time, keeping balances low, and avoiding delinquencies. Before applying, it's worth checking your credit report for errors, paying down credit cards, and avoiding new credit applications to give your score a lift. A Debt-to-Income (DTI) Ratio Under 43% Your debt-to-income ratio (DTI) shows how much of your income goes toward monthly debt payments — and lenders want to see that you're not already stretched thin. In 2025, the standard DTI cutoff for HELOCs remains around 43%, though lower is always better. If your total monthly debts (mortgage, car loan, credit cards, etc.) total $4,000 and you make $10,000 a month before taxes, your DTI is 40% — which is generally acceptable. But if your DTI is creeping above 45%, you may struggle to qualify or get stuck with less favorable terms. To verify this, lenders will ask for proof of income — like W-2s, pay stubs, or rental income from investment properties — and they'll compare it against your existing debts. Keeping your monthly obligations in check can make a big difference when it comes to HELOC approval. Don't Miss: . . When to Consider a HELOC So when does a HELOC make sense? Given the flexible nature of the credit line, it can be a smart option for a range of financial situations. If you're planning major home improvements — especially those that add value to your property — a HELOC lets you pay as you go without committing to a fixed loan upfront. It also works well for education expenses, which can fluctuate year to year, or for consolidating higher-interest debt into one lower-rate payment. Jose Garcia, president and CEO of Northwest Community Credit Union, says HELOCs are especially useful when used strategically: "If you're paying off high-interest credit cards, you can save a significant amount in interest and streamline your monthly bills." The key is making sure the borrowing serves a long-term benefit — not just a short-term fix. What to Consider When Comparing HELOC Offers Not all HELOCs are created equal — and lenders can vary widely in how they structure their terms. Before you apply, take a close look at what each offer includes and how it aligns with your financial goals. Garcia recommends shopping around to compare rates and incentives, especially from credit unions, which often offer more favorable terms than big banks. "Understand the interest rate structure — whether it's fixed or variable — and watch for hidden fees like annual charges or early repayment penalties," he says. Introductory rates can be tempting, but they often jump after the first year, so read the fine print carefully. You'll also want to ask whether the lender allows part or all of your balance to be converted into a fixed-rate loan — this can offer more payment stability in the long run. And don't forget to ask about how long the process takes. While pre-approval can happen in as little as 72 hours, closing can stretch out to 30–45 days or more. Trending Now: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $100. $100k in assets? Maximize saving for your retirement and cut down on taxes: . Other Ways to Tap Your Home's Equity HELOCs are just one way to access the value locked in your home. Depending on your financial situation and goals, a cash-out refinance or a home equity agreement (HEA) may be a better fit. Cash-Out Refinance With a cash-out refinance, you replace your current mortgage with a new one — typically at a new interest rate and for a higher amount. You get the difference in cash upfront, which can be used however you like. The key difference from a HELOC is that this is a one-time lump sum, not a revolving line of credit. Tim Gordon notes that this approach may offer lower interest rates, but it restarts your mortgage term and could mean higher overall interest costs depending on how long you stay in the home. Home Equity Agreement (HEA) A home equity agreement allows you to trade a portion of your home's future appreciation for upfront cash today. Unlike a loan, there are no monthly payments or interest charges. But there is a catch — when you sell your home or reach the end of the agreement, you'll have to repay the original amount plus a share of the home's increased value. If your property goes down in value, you repay less. If it goes up, you repay more. HEAs can be easier to qualify for than HELOCs, but the long-term cost depends heavily on what your home is worth when you exit the agreement. See Next: . . UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Thinking About a HELOC in 2025? Here's What Lenders Are Looking For originally appeared on Sign in to access your portfolio
