Berkshire profit rises, cash soars to record

Berkshire Hathaway reported higher profits and record cash reserves in its final financial report before Warren Buffett steps down as chief executive. The company’s cash pile reached an unprecedented $381.7 billion, reflecting Buffett’s cautious approach to markets amid ongoing stock sales.

‍

Between July and September, Berkshire sold more equities than it purchased for the 12th consecutive quarter. Its $283.2 billion portfolio, which includes major holdings like Apple and American Express, continued to see net sales rather than new acquisitions. Additionally, Berkshire refrained from repurchasing its own shares for the fifth straight quarter, a decision that coincides with its underperformance against the broader market.

‍

As Buffett, now 95, prepares to retire after six decades at the helm, Vice Chairman Greg Abel, 63, is set to take over as CEO while Buffett remains chairman. Known for his hands-on management style, Abel may steer the conglomerate toward new strategic directions, including the potential introduction of Berkshire’s first dividend since 1967. The company recently announced plans to use $9.7 billion in cash to acquire Occidental Petroleum’s OxyChem division.

‍

In the third quarter, Berkshire’s operating profit jumped 34% to $13.49 billion, up from $10.09 billion the previous year. Improved performance in its insurance and reinsurance units contributed to the increase, although Geico reported reduced underwriting gains due to higher acquisition costs. Net income, including investment gains, rose 17% to $30.8 billion. Buffett, however, has long dismissed net income as a reliable measure, citing its dependence on unrealized stock movements.

‍

Despite strong financial results, Berkshire’s stock has underperformed since Buffett’s retirement announcement on May 3, falling 12% and trailing the S&P 500 by 32 percentage points in 2025. The company’s diversified portfolio of nearly 200 businesses spans industries from utilities and chemicals to retail and confectionery, including brands like Dairy Queen, Fruit of the Loom, and See’s Candies. Berkshire has not completed a major acquisition since 2016, when it bought Precision Castparts for $32.1 billion, followed by smaller deals like Pilot Travel Centers and Alleghany Insurance.