Berkshire Hathaway Reports 34% Profit Surge, Cash Reserves Hit Record $381.7 Billion Ahead of Buffett's CEO Exit

Berkshire Hathaway reported a 34% increase in third-quarter operating profit to $13.49 billion, driven primarily by strong performance in its insurance businesses, while net income rose 17% to $30.8 billion. Despite these gains, the company did not repurchase any shares during the quarter and sold more stocks than it bought, reflecting Warren Buffett's cautious stance amid elevated market valuations. Berkshire's cash and cash equivalents reached a record $381.7 billion, indicating a conservative investment approach but raising anticipation about future capital deployment under incoming CEO Greg Abel. The conglomerate's net investment income declined 13% due to lower short-term interest rates, and specific segments like Geico experienced reduced underwriting profits amid rising costs. Buffett is stepping down after a six-decade tenure, with Abel expected to bring a more hands-on management style, potentially altering Berkshire's strategy for its vast cash reserves. Overall, the company maintains strong financial health and flexibility, though its stock has underperformed the broader market in 2025.