OMAHA, November 1, 2025 – Berkshire Hathaway (BRK.B) reported a 33% jump in operating profits for the third quarter, though the conglomerate’s halt in share repurchases disappointed some investors 1. The earnings strength underscores Warren Buffett’s continued operational excellence, while the buyback pause signals his cautious view on current valuations.
Key Takeaways
- Operating profits surged 33% in third quarter
- No share buybacks conducted, disappointing some investors
- Buffett appears cautious on current stock valuations
Market Reaction & Context
Berkshire’s operating profit growth of 33% significantly outpaced the broader S&P 500’s earnings growth, which has averaged around 5-7% in recent quarters. The conglomerate’s diverse business portfolio, spanning insurance, energy, and consumer goods, continues to generate robust cash flows despite economic uncertainties.
However, the absence of share repurchases marks a notable shift for the company 2. Berkshire had been a consistent buyer of its own stock in recent years, spending billions annually on buybacks when Buffett viewed shares as undervalued.
Detailed Analysis
The strong operating performance reflects strength across Berkshire’s key subsidiaries, including BNSF Railway, Berkshire Hathaway Energy, and its insurance operations. These businesses have benefited from improved pricing power and operational efficiencies despite macroeconomic headwinds.
The company’s massive cash hoard, which has grown to over 280 billion, provides substantial flexibility for future investments or acquisitions 8. Buffett has historically preferred to deploy cash when attractive opportunities arise rather than returning it to shareholders through dividends or buybacks at premium valuations.
Investment Implications
“The lack of stock buybacks in the third quarter is a mild disappointment to Berkshire investors. It indicates that Buffett doesn’t view the” current share price as particularly attractive, according to market analysts 2.
This cautious stance from the legendary investor, often called the “best investor of our time” 1, may signal broader market concerns. Buffett’s reluctance to repurchase shares could indicate he expects better buying opportunities ahead, either in Berkshire stock or potential acquisition targets.
Outlook
Berkshire’s strong operational performance continues to demonstrate the resilience of its business model. The company’s ability to generate substantial cash flows across economic cycles positions it well for future growth opportunities.
Investors will likely monitor whether Buffett resumes share buybacks in future quarters or deploys the company’s record cash pile toward strategic acquisitions. The conglomerate’s patient approach to capital allocation has historically rewarded long-term shareholders, even if it occasionally disappoints those seeking immediate returns through buybacks.
Not investment advice. For informational purposes only.
References
1“Warren Buffett Is The ‘Best Investor Of Our Time,’ Says Jim Cramer”. Yahoo Finance. Retrieved November 1, 2025.
2“Berkshire Operating Profits Rose 33% in Third Quarter”. Barron’s. Retrieved November 1, 2025.
3“Berkshire Probably Had a Stellar Quarter. Stock Buybacks Are a Wild Card”. Barron’s on X. Retrieved November 1, 2025.
4“Berkshire Hathaway Probably Had a Stellar Quarter”. Moomoo. Retrieved November 1, 2025.
5“Berkshire Hathaway (BRK.B) Stock Price & Overview”. Stock Analysis. Retrieved November 1, 2025.
6“Where Will Berkshire Hathaway Be in 5 Years?”. Finviz. Retrieved November 1, 2025.
7“Berkshire Likely Had a Stellar Quarter”. SwingTradeBot.com. Retrieved November 1, 2025.
8“282B Warren Buffett Portfolio 2025”. Stockcircle. Retrieved November 1, 2025.