Warren Buffett, the renowned former CEO and chairman of Berkshire Hathaway, has stepped down, but the influence of his tenure is still evident. The conglomerate’s recent third-quarter earnings reflect minimal stock transactions, a trend seen in the latter part of Buffett’s leadership. Known for his bargain-hunting skills, Buffett faced challenges in finding deals during a booming stock market.
Buffett vacated his role as CEO at the close of 2025 and stepped down as chairman in September this year. Now under Greg Abel’s leadership as CEO, Berkshire became a net seller of stocks in the last quarter. It bought stocks worth $2.4 billion while selling $2.8 billion, a significant decrease from the previous quarter’s net purchase of $20 billion.
Berkshire’s cash reserves fell by about $8 billion, landing at $357 billion, even after accounting for $20.5 billion in Treasury payables. This cash reserve, however, remains more than double what it was at the close of 2023, highlighting Buffett’s ongoing challenges in identifying valuable investments.
Abel and Buffett collaborated on a significant shift toward accelerating stock buybacks. This strategy saw $9.6 billion repurchased last quarter, marking the most active buyback phase in recent years. This decision proved effective, with Berkshire’s stock elevating from just under $500 at the end of September to a record high exceeding $570 recently.
Operating income for Berkshire reached $12.7 billion, a 6% reduction from the equivalent quarter of the previous year. This decrease was driven by a notable drop in insurance underwriting and investment income, which offset increased earnings from BNSF Railway, Berkshire Hathaway Energy, and the manufacturing, service, and retail sectors.
As an expansive conglomerate, Berkshire owns various businesses such as Geico, See’s Candies, and Duracell. It also maintains substantial investments in publicly traded companies including Apple, Coca-Cola, and American Express. The company’s shareholders will gain detailed insights into its stock activities once the third-quarter portfolio disclosure is filed next week.
Greg Abel has been closely aligned with Buffett’s strategies in his initial year as CEO, effectively embracing the maxim, “If it ain’t broke, don’t fix it.” This cautious continuation appears to resonate with shareholders so far.