Warren Buffett’s Berkshire Hathaway reported a sharp rebound in operating profit on Saturday, fueled by strong performance across its wholly owned businesses, including insurance and railroads. The conglomerate’s operating profit jumped 34% year over year to $13.485 billion in the third quarter.
This impressive gain was largely driven by a more than 200% surge in insurance underwriting income, which rose to $2.37 billion. Despite the significant pullback in Berkshire’s stock, Buffett once again refrained from repurchasing shares. The company confirmed there were no share buybacks during the first nine months of 2025.
Berkshire Hathaway’s Class A and B shares are each up 5% so far in 2025, compared with a 16.3% rise in the S&P 500. With no buybacks, Berkshire’s cash hoard swelled to a record $381.6 billion, surpassing the previous high of $347.7 billion set earlier this year in the first quarter.
The company also did not find other stocks attractive enough for significant investment, opting to net sell equities in the third quarter for a taxable gain of $10.4 billion.
In May, the 95-year-old Buffett announced he will step down as CEO at the end of the year, concluding six legendary decades at the helm. Greg Abel, Berkshire’s vice chairman of non-insurance operations, is set to take over as chief executive. Buffett will remain chairman of the board, while Abel will begin writing the annual Berkshire Hathaway letters starting in 2026.
Following the leadership transition announcement, Berkshire’s shares have tumbled double digits from their all-time highs. This sell-off partly reflects the so-called “Buffett premium”—the extra price investors are willing to pay due to Buffett’s unmatched track record and exceptional capital allocation skills.
Last month, Berkshire announced a major deal to acquire Occidental Petroleum’s petrochemical unit, OxyChem, for $9.7 billion in cash. This marks Berkshire’s largest acquisition since 2022, when it paid $11.6 billion for insurer Alleghany.
Overall earnings, which include gains from Berkshire’s investments in other publicly traded companies, rose 17% year over year to $30.8 billion, underscoring the conglomerate’s strong financial position amid a period of transition.
https://www.cnbc.com/2025/11/01/berkshire-hathaway-brk-earnings-q3-2025.html
