Berkshire Hathaway buys back $9.6 billion of its own stock but its profits declined
Berkshire Hathaway repurchased $9.6 billion worth of its own shares in the third quarter, but its overall profit fell more than 28% as the value of its investments changed.
The repurchases likely came to a halt recently as Berkshire's Class A stock price surged past $878,000, topping levels before Buffett surprised investors with his retirement plans in May 2025. He relinquished the chairman title in September after giving up the CEO job to Greg Abel in January.
Berkshire's massive cash pile returned to growing in the third quarter, reaching $377.4 billion, up from $365.5 billion at the end of June. The company reported a $22.1 billion profit, or $15,502 per Class A share, down from $30.8 billion a year earlier.
Geico struggles
CFRA Research analyst Cathy Seifert noted Geico is facing challenges with insurance premiums declining while claim costs rise. The insurer's underwriting profit fell to $1.35 billion from $2.37 billion last year, as competitors like Progressive handle the pressure better.
I think we're seeing the businesses that play to Greg's strengths do well. But the question is what about the rest of the franchise.
Operating earnings decline
Berkshire's operating earnings, which exclude investment value fluctuations, slipped nearly 6% to $12.7 billion, or $8,907 per Class A share. This was down from $13.485 billion a year ago and slightly below analysts' forecast of $8,821.84 per share.
Non-insurance businesses overseen by Abel, including manufacturers like Precision Castparts, utilities and BNSF railroad, appear to be performing better than the massive insurance unit despite the lack of major catastrophes this year.
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