Quick overview

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Berkshire Hathaway, owned by Warren Buffett, reported a significant increase in operating profit on Saturday. At the same time, the company’s cash reserves reached a record high without any buybacks. In the third quarter, Berkshire’s operating profit from its wholly owned companies, such as railroads and insurance, rose by 34% year over year to $13.485 billion.

Insurance underwriting income increased by more than 200 percent to $2.37 billion, driving the gains. Despite a notable drop in the stock, Buffett once again declined to buy back shares. According to the company, there were no share buybacks during the first nine months of 2025.

The conglomerate’s Class A and B shares increased by 5% each, while the S&P 500 gained 16.3%. Berkshire’s cash pile grew to a record $381.6 billion without any buybacks, surpassing the previous high of $347.7 billion set in the first quarter of this year.

The 95-year-old Buffett announced in May that he would step down from his role as CEO at the end of the year. Buffett will remain as board chairman, but Greg Abel, Berkshire’s vice chairman of non-insurance operations, will take over as CEO. Starting in 2026, Abel will also begin writing yearly letters. Following the announcement, the shares of the Omaha-based conglomerate dropped by double digits from all-time highs.

The so-called Buffett premium, or the higher price investors are willing to pay because of the billionaire’s unmatched track record and extraordinary capital allocation skills, is partly reflected in the sell-off. Berkshire announced last month that it would pay $9.7 billion in cash to acquire OxyChem, the petrochemical division of Occidental Petroleum. This deal is Berkshire’s largest since purchasing insurer Alleghany for $11.6 billion in 2022.