Berkshire's operating income increased 34%, Buffett did not buy back any shares

Berkshire's operating income increased 34%, Buffett did not buy back any shares, and cash reserves increased to $381 billion.

Points

• Berkshire's operating profit from the group's wholly-owned businesses, including insurance and railroads, increased 34% year-over-year to $13.485 billion in the third quarter.

• This increase was driven by a more than 200% increase in insurance underwriting income, which rose to $2.37 billion.

• Despite a significant decline in shares, Buffett once again refrained from repurchasing shares.

• Warren Buffett's Berkshire Hathaway reported a sharp jump in operating profit on Saturday, while its cash reserves reached a new high without any share buybacks.

• Berkshire's operating profit from the group's wholly-owned businesses, including insurance and railroads, increased 34% year-over-year to $13.485 billion in the third quarter. This profit was driven by a more than 200% increase in insurance underwriting income, which rose to $2.37 billion.

• Buffett once again refrained from repurchasing shares despite the sharp decline in the stock. The company stated that there will be no share buybacks during the first nine months of 2025. The group's Class A and B shares are up 5% each in 2025, while the S&P 500 is up 16.3%.

• Without any buybacks, Berkshire's cash reserves grew to a record $381.6 billion, surpassing the previous high of $347.7 billion set in the first quarter of this year.

• Berkshire also found other stocks unattractive; in the third quarter, the company sold net shares, generating a taxable gain of $10.4 billion.

• 95-year-old Buffett announced in May that he would step down as CEO at the end of the year after a distinguished six-decade tenure. Greg Abel, Berkshire's vice president of non-insurance operations, will take over as CEO, while Buffett will remain chairman of the board. Abel will also begin writing annual letters in 2026.

• Following this announcement, the Omaha-based conglomerate's shares closed two points below their all-time high. This sell-off partly reflects the so-called Buffett premium, or the extra price investors are willing to pay for the billionaire's unmatched track record and exceptional capital allocation skills.

• Last month, Berkshire announced a deal to acquire Occidental Petroleum's petrochemical unit, OxyChem, for $9.7 billion in cash. This deal is Berkshire's largest deal since 2022, when it paid $11.6 billion for insurance company Allegheny.

• Total income, which includes gains from Berkshire's investments in other publicly traded companies, rose 17% year over year to $30.8 billion.