Berkshire's operating earnings jump 34%, Buffett buys back no stock and raises cash hoard to $381 billion

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BRK.A

Warren Buffett and Greg Abel walkthrough the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025.

David A. Grogen | CNBC

Warren Buffett’s Berkshire Hathaway reported a sharp rebound in operating profit on Saturday, while its cash pile swelled to a new high with no buybacks.

Berkshire’s operating profit generated from the conglomerate’s wholly owned businesses including insurance and railroads jumped 34% year over year to $13.485 billion in the third quarter. The gains were driven by a more than 200% surge in insurance underwriting income, which rose to $2.37 billion.

Buffett once again refrained from repurchasing shares despite a significant pullback in the stock. The company said there were no share buybacks during the first nine months of 2025. Class A and B shares of the conglomerate are up 5% each in 2025, while the S&P 500 is up 16.3%.

Without any buybacks, Berkshire’s cash hoard swelled to a record $381.6 billion, surpassing the previous high of $347.7 billion set in the first quarter of this year.

Berkshire also didn’t find other stocks attractive, net selling equities in the third quarter for a taxable gain of $10.4 billion.

Berkshire Hathaway class A shares year to date

The 95-year-old Buffett in May announced he’s stepping down as CEO at the year-end after six legendary decades. Greg Abel, Berkshire’s vice chairman of non-insurance operations, is set to take over as chief executive, while Buffett will remain chairman of the board. Abel will also start writing annual letters in 2026.

The Omaha-based conglomerate’s shares have tumbled double digits from all-time highs following the announcement. The sell-off partially reflects the so-called Buffett premium, or the extra price investors are willing to pay because of the billionaire’s unmatched record and exceptional capital allocation skills.

Last month, Berkshire announced a deal to buy Occidental Petroleum’s petrochemical unit, OxyChem, for $9.7 billion in cash. The deal marks Berkshire’s largest 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% to $30.8 billion year on year.

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