During what marked the penultimate quarter of Warren Buffett’s remarkable tenure as chief executive of Berkshire Hathaway, the conglomerate recorded a striking performance that further emphasized its financial strength and disciplined strategy. The company’s operating profits soared to new heights, while its already formidable reserves of cash expanded to an unprecedented record of more than $350 billion. Yet, despite these extraordinary results, the legendary investor—famed worldwide for his patience and precision in identifying undervalued assets—continued to face significant challenges in uncovering attractively priced opportunities in an increasingly expensive marketplace.
The third-quarter earnings release, published on Saturday, offered extensive insight into Berkshire Hathaway’s diverse operations. It revealed a robust 34 percent year-over-year increase in operating income, which climbed to $13.5 billion. This surge was primarily powered by an exceptional rebound in its insurance division, where underwriting profits nearly tripled, reaching approximately $2.4 billion. This improvement signaled a strong recovery in the company’s core insurance businesses, benefiting from higher premiums, favorable claim trends, and disciplined risk management. Additional divisions also contributed positively: both BNSF Railway and the manufacturing, service, and retailing segment posted increased earnings, reflecting steady economic activity and operational efficiency. Conversely, Berkshire Hathaway Energy and the insurance investment segment faced declines in operating profits, underscoring the challenges posed by fluctuating energy markets and investment performance variations.
In capital management, Buffett and his small circle of trusted lieutenants deployed $6.4 billion toward new stock acquisitions during the period but offset these purchases by selling $12.5 billion worth of shares. This pattern extended a long-standing trend—marking the twelfth consecutive quarter in which Berkshire remained a net seller rather than a net buyer of equities. Investors will gain further clarity on the company’s specific trading actions when Berkshire files its detailed regulatory disclosure later in the month, enumerating the U.S. securities it both bought and sold. The continued restraint demonstrates Buffett’s steadfast adherence to valuation discipline, even amid the vast liquidity at his disposal.
For the fifth quarter in a row, Buffett refrained from repurchasing any Berkshire Hathaway shares, a decision that sends a powerful message to the market. When even the Oracle of Omaha declines to buy back his own company’s stock, it indicates that he perceives its current price as lacking the margin of safety he demands. This prudence, combined with the sustained stock sales, helped fuel the impressive accumulation of cash on Berkshire’s balance sheet, which now totals $358 billion—or $382 billion when adjusted to exclude payables related to U.S. Treasury purchases. Such an immense war chest not only demonstrates fiscal strength but also reflects Buffett’s readiness to seize opportunities when valuations eventually return to levels he considers compelling.
In May, Buffett captured global attention when he took the stage before thousands of shareholders at Berkshire’s annual meeting and announced his intention to step down as chief executive by the end of the year. The revelation, which resonated deeply throughout the financial community, signaled the approaching conclusion of an extraordinary 55-year leadership era. His long-prepared successor, Greg Abel—currently overseeing Berkshire’s extensive non-insurance operations—will assume the CEO role, while Buffett will remain actively involved as chairman, ensuring continuity of the company’s culture and investment philosophy.
Even as he approaches this momentous transition, Buffett has not completely abandoned deal-making. On October 2, Berkshire disclosed that it had agreed to acquire OxyChem, the chemical manufacturing subsidiary of Occidental Petroleum, for nearly $10 billion. This transaction, involving a company in which Berkshire already holds a significant shareholder stake, illustrates that while the pace of major deals has slowed, Buffett remains attentive to select opportunities that align with his disciplined investment principles. Thus, as he prepares to hand over daily responsibilities, Buffett continues to exemplify a patient, value-oriented approach that has defined both his career and Berkshire Hathaway’s enduring success.
Sourse: https://www.businessinsider.com/warren-buffett-berkshire-hathaway-q3-earnings-stocks-cash-ceo-retirement-2025-11
