Warren Buffett’s Berkshire Hathaway announced a significant increase in operating profit on Saturday, while its cash reserves climbed to a new record without any stock buybacks.
Berkshire’s operating profit derived from the conglomerate’s fully owned businesses including insurance and railroads soared 34% year over year to $13.485 billion in the third quarter. This increase was fueled by an over 200% rise in insurance underwriting income, which reached $2.37 billion.
Buffett again chose not to repurchase shares despite a notable drop in the stock price. The company reported no share buybacks during the first nine months of 2025. Class A and B shares of the conglomerate have each risen by 5% in 2025, while the S&P 500 has increased by 16.3%.
With no buybacks, Berkshire’s cash stash grew to a record $381.6 billion, exceeding the former high of $347.7 billion established in the first quarter of this year.
Berkshire also found no other stocks appealing, net selling equities in the third quarter for a taxable gain of $10.4 billion.
The 95-year-old Buffett announced in May that he will be stepping down as CEO at year-end after an impressive six decades. Greg Abel, the vice chairman of Berkshire’s non-insurance operations, is poised to assume the role of chief executive, while Buffett will maintain his position as chairman of the board. Abel will also begin authoring annual letters in 2026.
The shares of the Omaha-based conglomerate have dropped significantly from their all-time highs following this announcement. The decline is partially attributed to the so-called Buffett premium, which represents the additional price investors are willing to pay due to the billionaire’s unparalleled record and exceptional capital allocation abilities.
Last month, Berkshire announced a transaction to acquire Occidental Petroleum’s petrochemical division, OxyChem, for $9.7 billion in cash. This transaction marks Berkshire’s largest acquisition since 2022, when it purchased insurer Alleghany for $11.6 billion.
Overall earnings, which encompass gains from Berkshire’s investments in other publicly traded companies, rose 17% to $30.8 billion year-over-year.
