Berkshire Hathaway speeds up stock buybacks, though profit falls

Berkshire Hathaway has accelerated its stock buybacks under new CEO Greg Abel, despite a decline in third-quarter profit. The company reported a 6% drop in operating earnings to $12.71 billion and a 28% decline in net earnings to $22.11 billion. The Q3 loss reflected lower insurance earnings, particularly from Geico, and reduced gains on stock investments.

Throughout July to September, Berkshire repurchased $9.6 billion of its own shares and an additional $2 billion in October. This comes on the heels of $4.8 billion in purchases earlier in the year, bringing the total to $16.6 billion. The quarter was the third since Abel assumed the CEO role in September 2025, following Warren Buffett's retirement.

Berkshire's cash reserves dropped to $356.9 billion as of September, down from $380.2 billion six months earlier. The company's largest year for stock buybacks was 2021, when it purchased $27 billion. Berkshire owns a diverse array of businesses including insurers, railroads, utilities, industrial companies, and retail brands such as Brooks running shoes, Fruit of the Loom underwear, and See's Candies.

It also holds $335.5 billion in stocks like Alphabet, Apple, and American Express. Despite economic uncertainty driven by inflation and high gas prices, Berkshire's stock reached new highs this week, outperforming the S&P 500 by over 18 percentage points. Analyst Cathy Seifert attributes this to Berkshire's strong balance sheet, diversification, and share repurchases, suggesting investors may seek refuge in such stable investments amid market volatility.