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

• Why Did Berkshire Hathaway’s Cash Pile Hit a Record $381.6 Billion?
• Buffett’s Exit Plan: How Did Markets React?
• Greg Abel’s Challenge: Can He Fill Buffett’s Shoes?
• The OxyChem Deal: Berkshire’s Lone Big Bet in 2025
• FAQ: Key Questions on Berkshire’s 2025 Moves

Berkshire Hathaway’s Q3 2025 earnings reveal a staggering 34% jump in operating profits to $13.485 billion, alongside a historic cash reserve of $381.6 billion. Despite this, Warren Buffett’s reluctance to deploy capital—zero stock buybacks and a cautious stance on acquisitions—has left investors uneasy. With Buffett’s impending CEO exit and Greg Abel’s succession, market confidence wobbles, reflected in a 11.5% drop in Class B shares post-announcement. Meanwhile, Berkshire’s $9.7 billion OxyChem deal marks its largest MOVE since 2022, even as analysts flag concerns over fading "Buffett premium" and operational headwinds.

Why Did Berkshire Hathaway’s Cash Pile Hit a Record $381.6 Billion?

Berkshire’s cash hoard ballooned to $381.6 billion in Q3 2025, up from $347 billion earlier this year—enough to outmatch the GDP of Denmark. The surge stemmed from a 200% spike in insurance underwriting revenue ($2.37 billion) and disciplined capital allocation. Yet, Buffett’s inertia puzzled Wall Street: no buybacks occurred despite shares underperforming the S&P 500 by 10.9 percentage points year-to-date. "It’s a clear signal Buffett sees no bargains," noted the BTCC research team, citing TradingView data. The cash glut also reflects Berkshire’s struggle to find mega-deals; its last major acquisition was Alleghany for $11.6 billion in 2022.

Buffett’s Exit Plan: How Did Markets React?

When Buffett confirmed he’d step down as CEO by end-2025 (remaining board chair), Class B shares nosedived 11.5% within days. The stock had peaked at $540 pre-announcement, outperforming the S&P 500 by 22.4 points—a lead now halved. Analysts Meyer Shields and Jing Li downgraded Berkshire to "underperform," slashing their Class A price target from $740,000 to $700,000. Their report, "Too Many Things Going Wrong," highlighted risks like shrinking reinsurance margins and railroad tariff pressures. However, Semper Augustus’ Chris Bloomstran argued the dip was overdue: "Shares were overvalued pre-announcement. Greg Abel’s operational prowess is underestimated."

Greg Abel’s Challenge: Can He Fill Buffett’s Shoes?

Abel, set to take the CEO reins in 2026, faces skepticism over Berkshire’s opaque culture—no earnings guidance, no analyst Q&As. Investors tolerated this under Buffett, but Shields warned: "The ‘Buffett premium’ is evaporating." Still, Northstar’s Henry Asher countered, "Businesses like Burlington Northern won’t stop generating cash just because Buffett’s not CEO." Abel’s first test? Managing Berkshire’s energy division, which faces $1.2 billion in lost tax credits by 2026. His inaugural shareholder letter in 2026 will be scrutinized for strategic pivots.

The OxyChem Deal: Berkshire’s Lone Big Bet in 2025

October’s $9.7 billion OxyChem acquisition—Berkshire’s largest since Alleghany—signaled a rare capital deployment. The petrochemical unit adds to Berkshire’s energy empire but doesn’t offset its $10.4 billion in stock sales last quarter. "Buffett’s playing defense," observed Bloomberg. The move aligns with Abel’s oil/gas expertise, hinting at his future influence. Yet, with cash still 98% of Berkshire’s market cap, analysts crave bolder action.

FAQ: Key Questions on Berkshire’s 2025 Moves

What drove Berkshire’s 34% profit growth?

Insurance underwriting revenue soared 200% to $2.37 billion, while investment gains lifted total earnings to $30.8 billion.

Why no stock buybacks despite record cash?

Buffett likely deemed shares overvalued; buybacks totaled $0 in 2025 vs. $7.6 billion in 2024.

How significant is the OxyChem purchase?

At $9.7 billion, it’s Berkshire’s second-largest deal since 2022 but barely dented its cash reserves.