Berkshire Hathaway Inc. reported higher operating earnings for the third quarter of 2025, driven by stronger results in its insurance operations and steady performance from its rail, energy, and manufacturing units, according to its latest filing.
The company said after-tax investment gains reached US$9.2 billion in the third quarter and US$3.3 billion for the first nine months of the year. Berkshire defines operating earnings as net earnings excluding investment and derivative gains or losses. The conglomerate noted that quarterly investment results are often “meaningless” because unrealised equity gains must be included under accounting rules.
As of September 30, Berkshire’s insurance float stood at approximately US$176 billion, an increase of US$5 billion since the end of 2024. The company had 1,438,223 Class A equivalent shares outstanding.
Fortune reported that Berkshire’s cash holdings rose to US$381.7 billion in the third quarter, a new record, while operating earnings advanced 34% to US$13.5 billion. The company sold US$6.1 billion in shares during the period, as net investment income declined 13% to US$3.2 billion because of lower short-term interest rates. GEICO’s underwriting profit decreased 13% due to higher claims, even as it continued to add customers.
According to Yahoo! Finance, Berkshire’s filings show that Warren Buffett reduced the firm’s Bank of America stake by 427 million shares, representing 41% of its holdings, during the past year. The sales may be linked to profit-taking and concerns about how falling interest rates could affect the bank’s income. Buffett has also continued to add to Berkshire’s position in Pool Corp., a pool supply and maintenance distributor, over four consecutive quarters.
In a separate development reported by the Associated Press, Berkshire agreed to purchase Occidental Petroleum’s chemical division, OxyChem, for US$9.7 billion. The deal, expected to close later this year, comes as Buffett prepares to hand over the chief executive role to Greg Abel while remaining chairman.
Berkshire’s operations across insurance, transportation, utilities, and manufacturing continue to provide an indication of the United States economy’s performance.
Will Berkshire’s strategy under Greg Abel maintain Buffett’s long-standing investment discipline?
