Berkshire Hathaway's new CEO, Greg Abel, has stated that the company is not in any mood to waste money due to its $370 billion cash pile. Despite falling short of expectations in its latest earnings report, Abel stated that while some of this capital is needed to support insurance operations and protect Berkshire against extreme scenarios, it also constitutes Berkshire's dry powder. The company's operating profit for the fourth quarter fell 30% to $10.2 billion. Insurance companies, like Geico, saw a 38% overall decline, and Abel predicted that insurance companies will continue to face pressure as competitors cut rates. The initial reaction to the news was met with a 5.3% drop from Class A shares and Class B shares.