Warren Buffett’s Berkshire Hathaway delivered a strong rebound in the third quarter, with operating earnings soaring 34% compared to last year even as the legendary investor avoided stock buybacks and continued to pile up cash.
The Omaha based conglomerate reported $13.5 billion in operating profit, driven by exceptional performance in its insurance segment. Underwriting income surged more than 200% year-over-year to $2.37 billion, marking one of Berkshire’s strongest quarters in recent memory.
No Buybacks, Bigger Cash Hoard
Despite a noticeable pullback in Berkshire’s stock price, Buffett once again chose not to repurchase shares.
According to the company’s quarterly filing, no stock buybacks were made during the first nine months of 2025.
That decision left Berkshire’s cash pile at a record $381.6 billion, surpassing the previous all-time high of $347.7 billion set earlier this year. Both Class A and Class B shares are up around 5% in 2025, compared to the S&P 500’s 16.3% gain.
Few Attractive Investments
Buffett and his team also refrained from major equity purchases, instead selling more stocks than they bought during the quarter, generating $10.4 billion in taxable gains.
This cautious stance highlights Berkshire’s growing difficulty in finding attractively priced opportunities in a market that has rallied for most of the year.
Leadership Transition Ahead
In May, the 95-year-old Buffett announced that he will step down as CEO at the end of 2025, ending an extraordinary six-decade run. Greg Abel, currently vice chairman overseeing non-insurance operations, will take over as chief executive while Buffett remains chairman of the board. Abel is also expected to begin writing Berkshire’s annual shareholder letters starting in 2026.
Following the leadership news, Berkshire’s stock has dropped by double digits from its record highs a decline partly reflecting the “Buffett premium,” the extra value investors assign due to Buffett’s unmatched investment record and disciplined approach to capital allocation.
Major Deal Signals Strategic Moves
Last month, Berkshire announced a $9.7 billion cash acquisition of Occidental Petroleum’s chemical unit, OxyChem its largest deal since the $11.6 billion purchase of Alleghany in 2022.
The move underscores Berkshire’s strategy of selectively deploying its massive capital reserves into long-term, cash generating assets.
Total Earnings Climb 17%
Including unrealized gains from Berkshire’s publicly traded holdings, overall earnings rose 17% to $30.8 billion year over year a sign that the company remains a financial powerhouse even in a challenging market environment.
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