Berkshire Hathaway has reported a remarkable cash reserve of $381.7 billion, setting a new record for the conglomerate. This financial milestone comes as the company experienced a significant increase in its third-quarter earnings, which rose by 34% compared to the same period last year. The firm generated $13.485 billion in revenue during this quarter, up from $10.1 billion in the prior year’s third quarter.
Analysts are attributing the rise in investment income to growing cash balances and relatively high yields, albeit gradually declining, on cash and short-term securities. James Shanahan, an analyst at Edward Jones, noted the positive impact of these factors on the company’s income.
A substantial contributor to this surge in earnings was the insurance sector, where income from underwriting reached over $2.37 billion, marking a staggering 200% increase. This improvement is partly credited to a decrease in natural disasters and common catastrophic loss events, which historically affect profitability in this sector. In contrast, Berkshire Hathaway’s primary insurance and reinsurance companies rebounded with pre-tax quarterly profits after reporting losses a year prior.
However, not all areas of the insurance business saw gains. GEICO, the company’s property and casualty insurer, experienced a 13% decline in underwriting profits, primarily due to increased claim amounts, highlighting potential challenges in the auto insurance market.
In terms of stock performance, Berkshire Hathaway’s Class A and Class B shares have both increased in value by 5% in 2025. Throughout the first nine months of the year, the company has maintained a stance against share buybacks, marking the fifth consecutive quarter without repurchases. This decision has significantly bolstered its cash reserves, pushing them beyond the previous record of $347.7 billion established earlier in the year.
Additionally, the firm has continued its trend of divesting more equities than it acquires, with a reported gain of $10.4 billion from these sales. This strategic management of assets underscores Berkshire Hathaway’s disciplined approach to capital allocation in a fluctuating market environment.
