In its latest financial report, covering July to September, Berkshire Hathaway revealed a 34% rise in operating profit to $13.49 billion, approximately $9,376 per Class A share, compared to $10.09 billion a year prior. This growth was bolstered by improved loss projections in its insurance businesses, although Geico reported lower underwriting gains due to increased costs for new policies. Quarterly net income, which incorporates stock investment gains and losses, surged 17% to $30.8 billion, or $21,413 per Class A share, up from $26.25 billion a year ago. Buffett has been cautious, allowing cash to accumulate as he prepares to hand over the reins to Vice Chairman Greg Abel, who will take over as CEO. Berkshire plans to allocate $9.7 billion of its cash reserves to acquire Occidental Petroleum’s OxyChem chemicals business, announced in early October. Despite the robust earnings, Berkshire's stock has fallen 12% since Buffett's retirement announcement, trailing the S&P 500 by 32 percentage points this year.
Berkshire Hathaway Reports Profit Growth Amid Record Cash Reserves
Berkshire Hathaway reported a profit increase while cash reserves reached an all-time high of $381.7 billion, reflecting a cautious market approach ahead of Warren Buffett's retirement as CEO. The company sold more stocks than it purchased during the third quarter, marking its 12th consecutive quarter as a net seller. Despite the profit growth, Berkshire's stock price has underperformed the broader market, declining 12% since Buffett announced his departure.
Published: 11/2/2025, 11:30:09 AM | Updated: 11/2/2025, 11:30:50 AM Share
Source: CNN
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