Berkshire Hathaway (BRK.B) Stock: Why Buffett Keeps Selling and Cash Keeps Piling Up

TLDR

• Berkshire Hathaway’s cash holdings reached a record $381.7 billion in Q3 2025, up from $277 billion a year earlier
• The company sold more stocks than it bought for the 12th straight quarter and did not repurchase any of its own shares for the fifth consecutive quarter
• Operating profit jumped 34% to $13.49 billion, beating analyst expectations, driven mainly by insurance operations and favorable currency fluctuations
• Warren Buffett, 95, is stepping down as CEO at year-end after six decades, with Vice Chairman Greg Abel set to take over
• Berkshire’s stock has fallen 12% since Buffett announced his departure in May, trailing the S&P 500 by 32 percentage points during that period

Berkshire Hathaway reported third-quarter results that showed the company continuing to stockpile cash rather than deploy it. The conglomerate’s cash position grew to $381.7 billion, setting a new record.

Operating profit climbed 34% to $13.49 billion for the quarter. This beat analyst forecasts. Net income rose 17% to $30.8 billion.

The cash buildup comes as Warren Buffett prepares to step down as CEO at the end of 2025. He will have led the company for six decades. Greg Abel, 63, will take over as chief executive when Buffett departs.

Berkshire Hathaway Inc., BRK-B

For the 12th consecutive quarter, Berkshire sold more stocks than it purchased. The company’s equity portfolio now stands at $283.2 billion. Major holdings include Apple and American Express.

Berkshire did not buy back any of its own stock during the quarter. This marks the fifth straight quarter without share repurchases. The company’s stock price has lagged the broader market during this period.

Revenue grew just 2% in the quarter. This growth rate fell short of the overall US economy’s expansion. Several Berkshire businesses reported slower sales.

Clayton Homes saw stalled growth due to economic uncertainty. Duracell, Fruit of the Loom, and toymaker Jazwares all experienced reduced revenue. The company cited waning consumer confidence as a factor.

Insurance Operations Drive Results

The insurance segment powered the profit increase. Insurance underwriting income jumped to $2.37 billion from $750 million a year earlier. The quarter benefited from an absence of major hurricanes or other catastrophes.

Geico reported lower gains despite premium growth. The car insurer appears to have increased spending on advertising to acquire new policies. Premium growth came in at 5%, below some analyst expectations.

Insurance investment income declined 13% to $3.18 billion. Falling interest rates reduced income from Berkshire’s massive cash holdings. This trend started in the third quarter and may continue as a headwind.

The BNSF railroad increased profit by 6%. The company credited lower fuel costs and improved employee productivity. Berkshire Hathaway Energy saw profit drop 9% due to legal bills from wildfires and higher pipeline costs.

Market Reaction and Future Plans

Investors have responded negatively to Berkshire’s conservative stance. Since Buffett announced his departure on May 3, the stock has fallen 12%. It has trailed the S&P 500 by 32 percentage points during this span.

For all of 2025, Berkshire has underperformed the index by 11 percentage points. Analysts note that investors want to see the company deploy its cash reserves. CFRA Research analyst Cathy Seifert rates the stock a “hold” and says investors will struggle to find a catalyst.

Edward Jones analyst James Shanahan upgraded Berkshire to “buy” in September. He expressed disappointment that the company resisted spending during this year’s market rally. But he acknowledged that Abel will have substantial resources to work with.

Berkshire plans to spend $9.7 billion to acquire Occidental Petroleum’s OxyChem chemicals business. The transaction was announced on October 2. This represents a rare deployment of the cash pile.

Currency fluctuations accounted for more than two-fifths of the operating profit increase. The company’s insurance float stood at $176 billion. It remains unclear what Abel will do with the cash when he takes over.

Some analysts suggest he might institute Berkshire’s first dividend since 1967. The conglomerate is now valued at $1.03 trillion. Abel is known as a more hands-on manager than Buffett.

Berkshire owns almost 200 businesses across various sectors. These include chemical and industrial companies plus consumer brands like Dairy Queen and See’s Candies. The company has not made a major acquisition since purchasing Precision Castparts for $32.1 billion in 2016.

Berkshire is still evaluating how President Donald Trump’s One Big Beautiful Bill Act from July might affect its renewable energy projects. The company continues to monitor the regulatory landscape as leadership transitions.

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