Warren Buffett’s Berkshire Hathaway just reported a big jump in operating profit, showing resilience in a tough market. In the third quarter, their profit from their owned businesses, like insurance and railroads, soared by 34% compared to last year, reaching $13.5 billion. A significant factor in this growth was a remarkable increase in insurance underwriting income, which rose over 200% to $2.37 billion.
Despite the rise, Buffett chose not to buy back shares, even as the stock price dipped. In fact, there were no buybacks in the first nine months of 2025. Both Class A and B shares have gained 5% this year, while the S&P 500 increased by 16.3%. With no stock repurchases, Berkshire’s cash reserves reached a new high of $381.6 billion, surpassing the previous record of $347.7 billion from earlier this year.
Interestingly, Berkshire has also been cautious with stock investments. They sold equities in the third quarter, gaining $10.4 billion, indicating a deliberate approach to their portfolio.
Buffett, now 95 years old, announced he’ll step down as CEO at the end of the year. Greg Abel, currently vice chairman of non-insurance operations, will take over the role. Although Berkshire’s share prices took a hit after this news, it reflects what some call the “Buffett premium,” where investors value the leadership and track record of Buffett.
Recently, Berkshire made headlines by acquiring Occidental Petroleum’s petrochemical division, OxyChem, for $9.7 billion. This represents their largest deal since buying the insurance company Alleghany for $11.6 billion in 2022.
According to a recent report by Morningstar, companies managed by seasoned leaders, like Buffett, tend to perform better in volatile markets. Their insights often help navigate through challenges effectively.
Overall, Berkshire Hathaway continues to show strong earnings, climbing 17% to $30.8 billion, supported by their diverse investment strategy and Buffett’s unique approach to managing the company’s substantial cash reserves.
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