Berkshire Hathaway's (BRK.A.US, BRK.B.US) stock experienced a significant decline on Monday following the release of its fourth-quarter results and the first shareholder letter from CEO Greg Abel. The market response was subdued. Berkshire's Class A shares fell approximately 4.9% to $720,000, while the Class B shares dropped 4.91% to $480.17. The financial report indicated a 30% year-over-year decrease in the company's fourth-quarter operating profit. Even after adjusting for one-time factors such as currency fluctuations and certain goodwill impairments, the calculated adjusted operating profit still declined by nearly 20%. A notable contributor was a more than 50% plunge in insurance underwriting profit compared to the previous year. The company also suggested that the operating environment for its core property and casualty insurance business is becoming more challenging. Influenced by the earnings report, KBW analyst Meyer Shields reduced profit forecasts for 2026 and 2027. The estimates for Class A shares were lowered to $30,610 and $32,290 per share, respectively, representing reductions of about 5% and 4% from previous expectations. Shields maintained an "underperform" rating and a $695,000 price target. Although Abel's shareholder letter openly discussed the company's main operating businesses and committed to continuing the corporate culture established by Warren Buffett over six decades—earning recognition from some long-term investors—no changes to capital allocation policies were announced. The company has not repurchased any stock since May 2024, and no buybacks were executed in the fourth quarter of 2025 or in January 2026. Abel also stated there are currently no plans to initiate a dividend. This implies that Berkshire's record cash reserve of $373 billion could continue to grow, unless the stock price sees a significant decline or a major acquisition opportunity arises. In early January, the company spent approximately $9.5 billion to acquire the chemicals business of Occidental Petroleum. On the subject of dividends, Abel expressed that retaining earnings creates greater long-term value for shareholders compared to paying dividends. Some investors had hoped the new CEO would be more proactive in returning value to shareholders, for instance, by proposing a substantial tender offer repurchase plan of around $50 billion, but such measures have not materialized. Currently, about $127 billion of the company's cash is held at the parent company level, allowing for relatively more flexibility for potential buybacks or dividends. The majority of the remaining cash is held within insurance subsidiaries, which are subject to greater regulatory constraints. Furthermore, a goodwill impairment of approximately $1.6 billion in the fourth-quarter report was not explicitly disclosed in the press release but was instead buried in the footnotes of the 10-K filing, causing confusion among some investors. Abel did not hold an earnings call and indicated he would continue Buffett's tradition of not hosting quarterly earnings calls, believing this approach is more consistent with the company's long-term investment philosophy. Analysts suggest that against a backdrop of weak revenue growth, subdued profit prospects, and ineffective deployment of its massive cash pile, Berkshire may struggle to command a higher market premium in the near term. Based on current market expectations, the company's operating profit for the current year may show almost no growth.