Key Facts
• Berkshire Hathaway’s cash reserves surged to $382 billion in Q3 2025, a record high.
• Operating profit increased by 34%, reaching $13.5 billion.
• Insurance underwriting profit more than tripled due to fewer natural disasters.
• In August, Berkshire purchased $1.6 billion in UnitedHealth Group shares.
• In October, it announced a $9.7 billion acquisition of Occidental Petroleum’s chemical unit.
• Berkshire sold $6.1 billion in stocks during Q3, limiting new investments.
• Investment income fell 13% to $3.2 billion due to lower short-term interest rates.
• Both primary and reinsurance divisions posted pre-tax underwriting profits, reversing last year’s losses.
• GEICO’s pre-tax underwriting profit dropped 13% due to increased claims, but new policies grew.
• BNSF Railway’s operating profit rose 5% to $1.4 billion, driven by agricultural and energy transport.
• Utility operations saw a 9% decline in operating profit, totaling $1.5 billion.
• Berkshire has skipped share buybacks for five consecutive quarters.
• CEO Warren Buffett will retire by year-end 2025, with Greg Abel set to succeed him.
• Berkshire’s stock price has dropped 12% since Buffett’s retirement announcement in May 2025.
Summary
Berkshire Hathaway, led by Warren Buffett, reported record cash reserves of $382 billion in Q3 2025, alongside a 34% rise in operating profit. Insurance underwriting profits surged due to fewer natural disasters, while investment income declined by 13%. The company made significant acquisitions, including a $9.7 billion deal for Occidental Petroleum’s chemical unit, but sold $6.1 billion in stocks during the quarter. GEICO faced challenges with increased claims, though new policy growth continued. BNSF Railway’s profits grew, while utility operations saw a decline. Buffett’s impending retirement and the absence of share buybacks have contributed to a 12% drop in Berkshire’s stock price since May 2025. Greg Abel is set to take over as CEO, marking a new era for the conglomerate.
