Operating profit jumps 34% as cash reserves soar to an unprecedented $381.6 billion; Buffett prepares to hand over reins to Greg Abel

Berkshire Hathaway, the conglomerate helmed by legendary investor Warren Buffett, reported a strong rebound in operating profit for the third quarter of 2025, underscoring the resilience of its core businesses even as Buffett remained cautious on new investments.

The company’s operating profit climbed 34% year-over-year to $13.49 billion, driven largely by a remarkable 200% surge in insurance underwriting income, which jumped to $2.37 billion. The gains came from Berkshire’s diverse holdings across insurance, railroads, energy, and manufacturing.

Despite the stellar earnings, Buffett refrained from any share repurchases for the ninth consecutive month. The move, coupled with limited equity buying, pushed Berkshire’s cash hoard to a record $381.6 billion, breaking the previous high of $347.7 billion set earlier this year.

Berkshire also net sold equities for a taxable gain of $10.4 billion during the quarter, signaling that Buffett continues to find few attractively valued opportunities in the current market.

So far in 2025, Class A and B shares of Berkshire have gained about 5%, trailing the S&P 500’s 16.3% advance.

Buffett’s Transition Era Begins

The quarter also comes amid a historic leadership transition. Warren Buffett, 95, announced in May that he will step down as CEO at the end of 2025, concluding six decades of extraordinary leadership.

Greg Abel, Berkshire’s vice chairman overseeing non-insurance operations, is set to take over as chief executive in 2026. Buffett will remain chairman of the board and a guiding influence, while Abel will begin writing the annual shareholder letters starting in 2026.

Following the announcement, Berkshire shares slid from record highs, reflecting what analysts call the “Buffett premium” — the extra valuation investors have long assigned to the company because of Buffett’s unmatched investment acumen.

Major Deal Activity

Last month, Berkshire announced it would acquire Occidental Petroleum’s petrochemical arm, OxyChem, for $9.7 billion in cash, marking its largest purchase since 2022, when it bought insurer Alleghany for $11.6 billion.

The acquisition highlights Buffett’s enduring preference for cash-generating, tangible-asset businesses over speculative growth investments.

Earnings Snapshot

Including investment gains from its public equity portfolio, Berkshire’s overall earnings rose 17% year-on-year to $30.8 billion.

Despite market volatility and leadership changes, Berkshire remains one of the world’s most financially secure and conservatively managed corporations — now sitting on a record-breaking cash mountain and preparing for a new chapter in its storied history.