Berkshire Hathaway Reports 34% Surge in Quarterly Earnings Amid Record $381.6 Billion Cash Pile – What’s Next?
- Why Did Berkshire’s Quarterly Profits Jump 34%?
- Buffett’s Exit Plan Sparks 11.5% Stock Drop – Is Greg Abel Ready?
- The $9.7 Billion OxyChem Deal: Berkshire’s Lone Big Bet
- FAQ: Your Berkshire Hathaway 2025 Questions Answered
Berkshire Hathaway’s Q3 2025 earnings report reveals a staggering 34% jump in profits, fueled by a 200% spike in insurance underwriting income. Yet, Warren Buffett’s reluctance to deploy its $381.6 billion cash hoard has left investors uneasy. With no share buybacks in 2025 and lagging S&P 500 performance, questions loom over the conglomerate’s strategy. Add to that Buffett’s impending CEO exit and Greg Abel’s takeover, and you’ve got a recipe for Wall Street jitters. Meanwhile, Berkshire’s $9.7 billion OxyChem deal marks its biggest MOVE since 2022. Here’s the full breakdown.
Why Did Berkshire’s Quarterly Profits Jump 34%?
Berkshire Hathaway’s Q3 2025 earnings stunned Wall Street with a 34% year-over-year profit surge, hitting $30.8 billion. The star performer? Insurance underwriting, which ballooned by over 200% to $2.37 billion. But here’s the kicker: despite sitting on a cash mountain larger than some nations’ GDP ($381.6 billion!), Buffett hasn’t cracked open the vault for buybacks—even as Berkshire’s Class A and B shares underperformed the S&P 500 (up just 5% vs. 16.3%). Instead, the companystocks net in Q3, booking $10.4 billion in taxable gains. Analysts at TradingView note this marks Berkshire’s most conservative stance in years.
Buffett’s Exit Plan Sparks 11.5% Stock Drop – Is Greg Abel Ready?
When the 96-year-old Buffett announced his 2025 CEO retirement in May, Berkshire’s B-shares plummeted 11.5% within days. Though they’ve since recovered slightly, the stock still trails the S&P 500 by 10.9 percentage points as of October 2025. Keefe, Bruyette & Woods downgraded Berkshire to “Underperform,” slashing their price target to $700,000 (from $740,000). Their scathing report, titled “Multiple Things Moving in the Wrong Direction,” cited GEICO’s peaking margins, falling reinsurance prices, and railroad tariff headaches. But Semper Augustus’ Chris Bloomstran calls the panic overblown: “Everyone I know in the Berkshire ecosystem raves about Greg,” he told.
The $9.7 Billion OxyChem Deal: Berkshire’s Lone Big Bet
While avoiding equities, Berkshire did splash $9.7 billion in October to buy Occidental Petroleum’s chemical arm—its largest acquisition since the $11.6 billion Alleghany purchase in 2022. The move signals Abel’s growing influence, but skeptics wonder: Why such caution elsewhere? Operational earnings hit $13.5 billion in Q3, yet Buffett’s famed “elephant gun” remains holstered. As Henry Asher of Northstar Group quipped, “You won’t cancel your Burlington Northern shipment just because Buffett’s gone.”
FAQ: Your Berkshire Hathaway 2025 Questions Answered
How much cash does Berkshire Hathaway have in 2025?
As of Q3 2025, Berkshire’s cash reserves hit a record $381.6 billion—up from $147 billion in early 2020.
Why isn’t Buffett buying back shares?
Buffett likely sees limited value in current market prices. Net stock sales of $10.4 billion suggest he’s harvesting gains rather than hunting bargains.
When will Greg Abel become CEO?
Abel takes the reins in January 2026, though Buffett remains Chairman. Abel will also pen Berkshire’s iconic shareholder letters starting that year.
