Berkshire Hathaway Reports 34% Surge in Quarterly Profits and Record $381.6 Billion Cash Pile in 2025

• Why Did Berkshire Hathaway’s Profits Jump 34%?
• What’s Behind Buffett’s $381.6 Billion Cash Dilemma?
• How Is the CEO Transition Impacting Berkshire’s Stock?
• What Does the OxyChem Deal Reveal About Berkshire’s Strategy?
• FAQ: Your Top Berkshire Hathaway Questions Answered

Berkshire Hathaway’s Q3 2025 earnings report reveals a staggering 34% jump in profits, fueled by a 200% spike in insurance underwriting revenue. Despite sitting on a historic $381.6 billion cash reserve, Warren Buffett has remained uncharacteristically cautious, refusing to deploy capital—even as investors clamor for buybacks. The looming leadership transition to Greg Abel has sparked market jitters, with Berkshire’s stock underperforming the S&P 500 by 10.9 percentage points. Meanwhile, the $9.7 billion OxyChem acquisition marks Berkshire’s biggest deal since 2022. Here’s the full breakdown.

Why Did Berkshire Hathaway’s Profits Jump 34%?

Berkshire’s Q3 2025 earnings soared to $30.8 billion, up 17% year-over-year, driven by a 200% explosion in insurance underwriting revenue ($2.37 billion). The conglomerate’s operating profits hit $13.485 billion, while its cash hoard ballooned to $381.6 billion—enough to buy Tesla outright. Yet Buffett’s reluctance to invest has left Wall Street baffled. "It’s like watching a poker champion fold every hand," quipped one analyst. Notably, Berkshire sold $10.4 billion in equities this quarter instead of buying, signaling Buffett’s bearish outlook.

What’s Behind Buffett’s $381.6 Billion Cash Dilemma?

The "Oracle of Omaha" hasn’t repurchased a single share in 2025, even as Berkshire’s Class B shares dipped 15% in August. While the stock rebounded 5% YTD, it trails the S&P 500’s 16.3% rally. Some speculate Buffett’s holding fire for recession-proof deals—after all, he pounced during the 2008 crisis with $25 billion in high-yield investments. Others argue today’s frothy markets offer few bargains. "When the tide’s out, we’ll see who’s swimming naked," Buffett often says. For now, Berkshire’s war chest could buy Disney, Netflix, and Starbucks combined.

How Is the CEO Transition Impacting Berkshire’s Stock?

Since Buffett’s May 2025 retirement announcement, Berkshire’s Class B shares tumbled 11.5%, erasing their 22.4% lead over the S&P 500. Keefe Bruyette & Woods downgraded the stock to "underperform," slashing their price target to $700,000 (from $740,000). Analyst Meyer Shields cited "multiple headwinds," including shrinking GEICO margins and tariff-related rail issues. The "Buffett Premium"—the extra valuation tied to his leadership—appears to be evaporating. Still, Semper Augustus’ Chris Bloomstran remains bullish: "Greg Abel doesn’t need to be Buffett 2.0 for Berkshire to print money."

What Does the OxyChem Deal Reveal About Berkshire’s Strategy?

October’s $9.7 billion OxyChem purchase—Berkshire’s largest since Alleghany in 2022—signals a shift toward hard assets. The petrochemical subsidiary provides stable cash flows, complementing Berkshire’s energy empire (which already owns 28% of Occidental Petroleum). Notably, this contrasts with Buffett’s stock market inactivity. "They’re playing chess while others play checkers," observed Northstar’s Henry Asher. The deal also hints at Abel’s future priorities—he oversaw Berkshire Energy’s growth into a $30 billion behemoth.

FAQ: Your Top Berkshire Hathaway Questions Answered

Why isn’t Buffett spending Berkshire’s cash?

At 95, Buffett’s famously patient. He’s waiting for what he calls "elephant-sized opportunities"—like the 2008 Goldman Sachs deal that netted 10% annualized returns. With recession fears growing, he may be preparing for market chaos.

Will Greg Abel change Berkshire’s culture?

Unlikely. Abel’s 25-year Berkshire tenure suggests continuity. However, he’ll face pressure to improve transparency—Buffett famously avoided earnings calls and guidance.

Is Berkshire’s stock a buy after the dip?

Value investors see appeal at 1.3x book value (below its 1.4x 10-year average). But with the S&P 500 outperforming, some argue the "Buffett discount" could persist.