Berkshire Hathaway’s cash reserves have surged to a record $382 billion after reporting strong third-quarter earnings, underscoring the conglomerate’s conservative financial strategy and the strength of its insurance operations.
Record Cash Holdings
Berkshire Hathaway, the investment conglomerate led by Warren Buffett, reported that its cash pile climbed to $381.7 billion at the end of the third quarter of 2025, up from $277 billion a year earlier. The figure marks the largest cash reserve in the company’s history, reflecting robust operating income and restrained spending on acquisitions.
Earnings Performance
Operating earnings rose 34% year-on-year to $13.49 billion, beating analyst expectations. The increase was driven primarily by insurance underwriting income, which jumped to $2.37 billion from $750 million in the same quarter last year. Analysts noted that relatively few natural disasters and favourable foreign exchange gains contributed to the strong results.
Berkshire’s equity portfolio also expanded to $283 billion, while investment income benefited from higher cash balances and still-elevated yields on short-term securities.
Market and Analyst Reaction
Analysts at TD Cowen and Edward Jones highlighted the results as evidence of Berkshire’s resilient insurance operations and disciplined balance sheet management. However, they also noted that GEICO’s 5% premium growth lagged expectations, suggesting competitive pressures in the auto insurance market.
Despite the record cash position, Berkshire was a net seller of equities for the 12th consecutive quarter, offloading more than $6 billion in shares while making selective investments, including a $9.7 billion deal in chemicals and vinyl products maker OxyChem.
Strategic Implications
The swelling cash reserves have renewed speculation about how Berkshire will deploy its capital. Buffett has historically preferred to keep large cash buffers for flexibility in downturns, but investors are watching closely for potential large-scale acquisitions or buybacks.
The record hoard also comes as Buffett prepares to step down as CEO at the end of 2025, marking the end of an era for the Omaha-based conglomerate. His successor, widely expected to be Vice Chairman Greg Abel, will inherit both a formidable balance sheet and the challenge of sustaining Berkshire’s long-term growth.
Key Figures:
- Cash reserves: $381.7B (record high)
- Operating earnings: $13.49B (+34% YoY)
- Insurance underwriting income: $2.37B (up from $750M)
- Equity portfolio value: $283B
- Recent investment: $9.7B in OxyChem
Sources: Yahoo Finance, UPI, Motley Fool, Outlook Business.
Berkshire-Hathaway-hq-Kiewit-Plaza-Omaha-Picture-by-JonClee86
