Berkshire Hathaway’s Resurgence Amid Market Volatility
Warren Buffett's Berkshire Hathaway has narrowed its underperformance gap against the S&P 500 to 4.3 percentage points, down from 12.2 points in late October. The rebound follows a robust third-quarter earnings report, with operating income surging 34% to $13.5 billion—propelled by a 200% leap in insurance underwriting profits.
Despite the strong results, Buffett maintained his buyback freeze, signaling he still views Berkshire shares as overvalued even after months of trading below May peaks. The conglomerate's cash hoard ballooned to a record $381.7 billion, up 10.9% since June, reflecting disciplined capital allocation amid market uncertainty.
The rally coincides with growing investor skepticism about overheated AI valuations and economic fragility. As markets recalibrate risk appetites, Berkshire's defensive positioning and cash war chest position it as a potential beneficiary of sector rotation.
