Warren Buffett’s Berkshire Hathaway reported a sharp rebound in profits and a record cash pile in what is expected to be the final earnings report before the 95-year-old investor steps down as chief executive.

Operating profit rose 34% from a year earlier to $13.49 billion, driven largely by a surge in insurance underwriting income, which climbed more than 200% to $2.37 billion after a mild hurricane season and strong performance from GEICO. Total earnings, which include investment gains, increased 17% to $30.8 billion.

The results underscore the resilience of Berkshire’s core businesses, which span insurance, railroads, energy, manufacturing, and retail. Yet the company continues to take a conservative approach. Buffett refrained from repurchasing any shares for the fifth consecutive quarter and allowed cash holdings to swell to a record $381.7 billion, surpassing the previous high of $347.7 billion set earlier this year.

Berkshire also remained a net seller of equities for the 12th straight quarter, booking $10.4 billion in gains from stock sales. The company’s equity portfolio, valued at roughly $283 billion, includes large stakes in Apple, American Express, and Coca-Cola. Analysts said the continued stock sales and lack of buybacks reflect Buffett’s view that valuations across markets remain elevated and that opportunities are scarce.

The restraint comes as Berkshire’s stock has trailed the broader market this year. Both Class A and Class B shares are up about 5% in 2025, compared with a gain of more than 16% for the S&P 500. The underperformance partly reflects what some investors call the “Buffett premium” (the extra price shareholders have long been willing to pay for his stewardship) beginning to fade following his announcement in May that he will step down as CEO at year-end.

Greg Abel, Berkshire’s vice chairman overseeing non-insurance operations, will succeed Buffett in January. Buffett will remain as chairman. Abel, 63, is regarded as a more hands-on operator, and analysts expect him to take a more active approach to deploying Berkshire’s record cash, though significant strategic changes are not expected while Buffett remains closely involved.

Berkshire continues to make selective acquisitions. Last month, the company agreed to buy Occidental Petroleum’s petrochemical arm, OxyChem, for $9.7 billion in cash, its largest purchase since acquiring insurer Alleghany in 2022. The deal barely dents Berkshire’s cash reserves but underscores its preference for buying entire businesses rather than taking new stock positions in volatile markets.

Revenue in the quarter rose about 2% to $94.97 billion. Profit at the company’s utilities declined nearly 9% to $1.49 billion, and management cited weaker consumer confidence and economic uncertainty as reasons for softness in several retail units, including Fruit of the Loom, Duracell, and toymaker Jazwares.

Analysts say investors will now focus on how Abel manages Berkshire’s vast resources once he formally takes the helm. Some expect him to be more transparent with the market and possibly consider paying a dividend for the first time since 1967 if the company cannot find attractive uses for its growing cash balance.

For his last quarter, Buffett didn’t give investors a big swing… he gave them a mirror. The man who built Berkshire by ignoring market fads exits with the same steady hand and a record pile of cash. It’s not thrilling, but it’s why he outlasted everyone else.

At the time of publishing this article, Stocks.News holds positions in Apple and Coca-Cola as mentioned in the article.