Berkshire's $381B Cash Reserve and Discreet Share Repurchases Amid Leadership Change
- Berkshire Hathaway's Q3 operating earnings rose 34% to $13.485B, driven by a record $381.67B cash reserve and 200% surge in insurance profits. - No 2025 share buybacks and CEO transition risks sparked investor concerns, with shares down 11.5% since May amid leadership uncertainty. - Greg Abel's leadership faces scrutiny as Berkshire remains a net seller of equities for 12 consecutive quarters despite $13.5B operating income. - $9.7B OxyChem acquisition marked rare capital deployment, contrasting with Buf
Berkshire Hathaway Inc. (BRK.A, BRK.B) posted a 34% jump in operating earnings for the third quarter compared to last year, fueled by an unprecedented $381.67 billion in cash and strong results from its insurance underwriting business, as per a
The company’s cash holdings, now at a record high, are the result of strong business performance, a lack of share buybacks, and selective asset sales. Net earnings attributable to shareholders rose to $30.796 billion, a 17% increase from the previous year, according to a
Warren Buffett, now 95, will retire as CEO by the end of the year, with Greg Abel set to take over. This leadership change has already affected investor confidence, with Berkshire’s shares lagging the S&P 500 by 10.9 percentage points as of late October, according to Benzinga. Abel, who will also write the annual shareholder letter starting in 2026, inherits the challenge of upholding Buffett’s legacy while steering the company through a changing economic environment. Analysts at Keefe, Bruyette & Woods lowered their price target for Class A shares from $740,000 to $700,000, calling the stock “underperform,” as reported by Seeking Alpha.
Berkshire’s cautious approach to its massive cash reserves has fueled ongoing debate about its investment tactics. Although the company earned $13.5 billion in operating income, it continued to be a net seller of stocks for the twelfth straight quarter, realizing $10.4 billion in taxable gains, according to
One significant exception to Berkshire’s conservative cash management was its $9.7 billion purchase of Occidental Petroleum’s OxyChem division in October—the company’s biggest acquisition since 2022, according to
As the leadership handover approaches, investors are watching closely to see how Abel will balance Berkshire’s traditional conservatism with the need for growth. For now, the company’s record cash and strong operating results highlight its financial stability, even as uncertainty remains about its path forward.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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