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Warren Buffett’s Berkshire Hathaway reported a record-breaking $381.7 billion in cash holdings for the third quarter, reflecting a cautious stance toward the financial markets amid trade uncertainties and slowing global growth. The announcement came with the release of Berkshire’s Q3 earnings report, marking the final quarterly results before Buffett formally steps down as chief executive. This record accumulation of cash underscores the company’s conservative investment approach, as it continued to sell more equities than it purchased for the twelfth straight quarter. Berkshire’s equity portfolio, valued at $283.2 billion, remains one of the largest in the world, yet recent moves suggest a defensive posture rather than aggressive expansion, as per a Mint report. No Share Buybacks For The Fifth Straight Quarter The conglomerate’s latest filings showed that Berkshire did not repurchase any of its own shares during the quarter — the fifth consecutive period without buybacks. This decision comes even as the firm’s stock has underperformed the broader market, declining 12 per cent since Buffett announced his exit in May. The report also revealed that the company sold $6.1 billion worth of shares in the quarter. Despite the divestments, Buffett appeared active earlier this year, acquiring a $1.6 billion stake in UnitedHealth Group and making a $9.7 billion offer to buy OxyChem last month — signalling a selective but strategic approach to new deals. Strong Q3 Earnings Despite Tepid Revenue Growth Berkshire Hathaway posted a 34 per cent rise in operating profit to $13.49 billion, driven by a solid rebound in its insurance underwriting business. The firm’s net income climbed 17 per cent to $30.8 billion, while net investment income slipped 13 per cent to $3.2 billion due to lower short-term interest rates. Both its primary insurance and reinsurance segments returned to profitability this quarter after recording losses a year earlier. However, total revenue grew just 2 per cent, lagging behind the pace of US economic expansion. The company attributed the modest growth to economic uncertainty and declining consumer confidence, which weighed on performance across several business units. Buffett’s Exit And The Road Ahead For Berkshire At 95 years old, Warren Buffett is preparing to step down as CEO after more than six decades of leadership. Vice Chairman Greg Abel is set to assume control, while Buffett will remain as Chairman of the board, the report states. It remains unclear how Abel will deploy Berkshire’s enormous cash pile, with analysts speculating possibilities such as initiating the company’s first dividend since 1967. Investors and economists alike will be closely watching the Omaha-based conglomerate, given its vast exposure across insurance, energy, rail, and manufacturing, often seen as a reflection of the broader US economy.
