Warren Buffett’s Berkshire Hathaway Inc. reported a record cash reserve of $381.7 billion in the third quarter, underscoring the legendary investor’s increasingly cautious stance even as his sprawling empire delivered a surge in profits. According to company filings released Saturday and reported by Bloomberg, Berkshire’s operating earnings climbed 34% to $13.5 billion, bolstered by strong results in its insurance operations and an unusually quiet quarter for natural disasters.
The cash milestone marks a new high for Buffett’s conglomerate, which spans insurance, railroads, utilities, manufacturing, and consumer goods. Despite the record hoard, Berkshire’s net investment income fell 13% to $3.2 billion, a decline attributed to easing short-term interest rates. Buffett, often described as the “Oracle of Omaha,” sold about $6.1 billion worth of equities during the period, suggesting a continued preference for liquidity amid uncertain markets.
Berkshire’s core insurance operations — both its primary and reinsurance businesses — swung to a pretax underwriting profit after posting losses a year earlier. However, its auto insurance arm, Geico, saw pretax underwriting profits slide 13% as claims rose, even as it continued to grow its customer base.
Notably, the firm refrained from repurchasing its own shares for the fifth consecutive quarter, even after Berkshire stock dropped nearly 12% following Buffett’s announcement in May that he would step down as CEO by year’s end. The lack of buybacks, combined with the swelling cash position, has fueled speculation among analysts about whether Buffett is positioning the firm for a major acquisition — or simply waiting for market valuations to cool further.
Berkshire’s results are often viewed as a barometer of the broader U.S. economy. Its portfolio of businesses — spanning from rail giant BNSF to energy producer Berkshire Hathaway Energy — offers a unique cross-section of economic activity. With rising profits, restrained buybacks, and a mountain of idle cash, Buffett’s latest report paints a picture of an American corporate titan brimming with financial firepower but treading carefully in an uncertain global landscape.
