BRK-B · 10-Q · 2026Q1 · Full report
Investment Gains Volatility
BERKSHIRE HATHAWAY INC · 2026-05-04 · Importance 45 · Surprise 64 · From source text
Unrealized and realized gains and losses from Berkshire’s large equity securities portfolio produced significant volatility in Q1 2026, including net unrealized losses of $3.3 billion (Q1 2026) and $6.8 billion (Q1 2025) on holdings at period end. These unrealized losses were partially offset by gains on securities sold of $1.7 billion in Q1 2026 and $371 million in Q1 2025, while taxable gains on equity securities sold were $7.2 billion in Q1 2026 versus $3.1 billion in Q1 2025. Management emphasizes that both realized and unrealized investment gains and losses materially affect reported net earnings but believes they have limited analytical or predictive value for periodic operating performance. Changes in foreign currency exchange rates on non-U.S. issuers’ securities also affect reported investment gains and losses.
Key facts
- Taxable investment gains on equity securities sold were gains of $7.2 billion in the first quarter of 2026 compared to $3.1 billion in 2025. source
- First quarter investment gains (losses) were $(1,605) million and $(6,435) million (table values). source
- Net earnings (losses) in the first quarter were $(1,240) million and $(5,038) million (table values). source
- Substantially all pre-tax investment losses in the first quarter of 2026 and 2025 included net unrealized losses of $3.3 billion and $6.8 billion, respectively, attributable to changes during the period in market prices on equity securities we held at the end of each period. source
- Investment gains (losses) in the First Quarter: $(1,240) million in 2026 and $(5,038) million in 2025. source
- Gains on securities sold were $1.7 billion in the first quarter of 2026 and $371 million in 2025. source
- Net earnings attributable to Berkshire shareholders were $10.1 billion for the first quarter of 2026 and included after-tax investment losses of approximately $1.2 billion. source
- After-tax equity method earnings increased $39 million in 2026 compared to 2025 due to increased earnings from Occidental, partially offset by lower earnings from Kraft Heinz and Berkadia. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +7.7% | First quarter investment gains (losses) were $(1,605) million and $(6,435) million (table values). |
| net_income | positive | realized | +6.5% | Taxable investment gains on equity securities sold were gains of $7.2 billion in the first quarter of 2026 compared to $3.1 billion in 2025. |
| net_income | positive | realized | +6.0% | Net earnings (losses) in the first quarter were $(1,240) million and $(5,038) million (table values). |
| net_income | positive | realized | +5.5% | Substantially all pre-tax investment losses in the first quarter of 2026 and 2025 included net unrealized losses of $3.3 billion and $6.8… |
| net_income | positive | realized | +2.1% | Gains on securities sold were $1.7 billion in the first quarter of 2026 and $371 million in 2025. |
| net_income | negative | realized | -1.9% | Net earnings attributable to Berkshire shareholders were $10.1 billion for the first quarter of 2026 and included after-tax investment… |