Berkshire Hathaway repurchased $9.6 billion of its own shares in the third quarter, a sharp increase from prior periods, as the conglomerate’s overall profits declined by 28% compared to the same period last year.
The company reported $22.1 billion in total earnings for the quarter, down from $30.8 billion in the third quarter of 2024. Operating income, which excludes investment gains, fell 5.8% to $12.7 billion, driven by declines in its insurance underwriting and investment income.
Immediate Action: Record Buybacks Amid Profit Decline
Berkshire’s $9.6 billion in stock buybacks marked the highest quarterly repurchase total in years, more than doubling the $4.5 billion spent in the second quarter. The buybacks coincided with a 12% rise in Berkshire’s Class A stock over the past month, reaching a record high above $570 per share.
Despite the earnings decline, Berkshire’s cash reserves grew to $377.4 billion, up from $365.5 billion at the end of June. The company’s five largest equity holdings—Apple, Bank of America, Coca-Cola, American Express, and Alphabet—remained unchanged from the prior quarter.
Deeper Dive: Insurance Struggles, Non-Insurance Growth
Insurance Unit Faces Headwinds
Berkshire’s insurance businesses, including Geico, reported a 43% drop in underwriting income to $1.35 billion, while insurance investment income fell 14% to $2.73 billion. Analysts cited declining premiums and rising claim costs as key challenges, with Geico’s underwriting profit dropping to $1.35 billion from $2.37 billion in the same period last year.
Competitors like Progressive have managed these pressures more effectively, according to analysts. Cathy Seifert of CFRA Research noted that Geico’s struggles reflect broader industry trends, including increased competition and higher claim severity.
Non-Insurance Businesses Outperform
Under CEO Greg Abel, Berkshire’s non-insurance operations—including BNSF Railway, Berkshire Hathaway Energy, and manufacturers like Precision Castparts—posted year-over-year earnings growth. These businesses contributed to the conglomerate’s resilience despite the insurance sector’s decline.
Leadership Transition and Strategic Shifts
Since Warren Buffett stepped down as CEO in January 2025 and relinquished the chairman role in September 2025, Abel has accelerated share repurchases and adjusted Berkshire’s investment strategy. The company was a net seller of stocks in the third quarter, buying $2.4 billion and selling $2.8 billion, a reversal from the $20 billion net purchase in the second quarter.
Buffett’s long-standing cash hoard, which had been shrinking as he sought value investments, began growing again, reaching $377.4 billion. This shift reflects Abel’s approach, which differs from Buffett’s prolonged caution during a historic stock-market boom.
Berkshire’s third-quarter performance underscores the challenges of transitioning leadership while navigating declining insurance margins and volatile investment returns. The company’s record buybacks signal confidence in its stock valuation, even as earnings face pressure from its core insurance businesses.