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Warren Buffett's Berkshire Hathaway closed the third quarter on a high note, reporting a powerful rebound in earnings and a record cash reserve, even as the 95-year-old investor prepares to step down as chief executive.
Operating profit across Berkshire's many units, from insurance to railroads, jumped 34 percent year over year to $13.49 billion, buoyed by a dramatic upswing in insurance underwriting income that soared more than 200 percent to $2.37 billion. The improvement reflected fewer catastrophe losses and stronger reinsurance results.
Despite the profit spike, Buffett once again held off on share repurchases. It was the fifth straight quarter without buybacks, extending a cautious streak as Berkshire's stock lags the broader market. Class A and B shares are up just 5 percent in 2025 compared with a 16 percent gain for the S&P 500.
That restraint sent Berkshire's cash pile to an unprecedented $381.6 billion, eclipsing the previous high set earlier this year. The Omaha-based conglomerate also remained a net seller of equities for the twelfth consecutive quarter, realizing a taxable gain of about $10.4 billion as it trimmed holdings in Apple and other long-term stakes.
Buffett's upcoming retirement at year-end will hand the reins to Greg Abel, the company's vice chairman for non-insurance operations. Abel, 63, is expected to bring a more active management style and could eventually decide whether Berkshire pays its first dividend since 1967. Buffett will remain as board chairman.
Investors appear wary of the transition: Berkshire's shares have fallen roughly 12 percent since May 3, erasing what analysts call the "Buffett premium," the extra confidence attached to his unmatched investing record.
Still, Berkshire remains busy. In October it agreed to buy Occidental Petroleum's OxyChem unit for $9.7 billion, its largest acquisition since 2022.
Including investment gains, overall profit climbed 17 percent to $30.8 billion, though Buffett has long cautioned that such figures "tell you nothing about the true health" of the company.
With cash at record levels and a new leader waiting in the wings, Berkshire's next chapter begins under different hands, but still firmly in Buffett's shadow.
