Berkshire Hathaway didn’t just report earnings this quarter; it sent a clear message. In Q2 2025, Warren Buffett’s timeless investment firm posted $12.37 billion in net earnings to shareholders, down sharply from $30.3 billion in the year-ago period.

The cyclically adjusted price-to-earnings (CAPE) ratio is a valuation metric typically used to gauge whether entire stock market indexes are overvalued or undervalued. It was developed by Nobel-winning economist Robert Shiller during the dot-com bubble, so it is sometimes referred to as the Shiller P/E ratio.

Buffett, who oversees the company’s share repurchase programme, stopped buying back Berkshire shares in May 2024. He repurchases stock when he “believes that the repurchase price is below Berkshire’s intrinsic value”, according to company filings.

Class A shares of Warren Buffett's Berkshire Hathaway fell more than 3% in afternoon trading on Monday, as investors fretted over a $3.8 billion write-down and a dip in quarterly operating profit that the firm disclosed on Saturday.

Berkshire Hathaway’s stock price has declined following Warren Buffett’s announcement that he will step down as Chief Executive Officer of the conglomerate. The market reaction highlights investor uncertainty about the company’s future leadership and direction.