Berkshire Hathaway repurchased $9.6 billion of its own stock in the third quarter, even as its overall profit declined more than 28% due to changes in the value of its investments and challenges at its insurance subsidiary, Geico. The company's total profit for the quarter was $22.1 billion, a decrease from $30.8 billion in the same period last year.
Berkshire's operating earnings, which exclude the volatile value of investments, also saw a decline of nearly 6%, falling to $12.7 billion from $13.485 billion year-over-year. This figure, however, still surpassed the predictions of financial analysts surveyed by FactSet Research.
Geico's performance was a significant factor in the profit decrease. According to CFRA Research analyst Cathy Seifert, the insurance company is currently facing pressure from declining insurance premiums coupled with rising claim costs. Geico's underwriting profit dropped to $1.35 billion from $2.37 billion a year ago, with Seifert noting that competitors like Progressive appear to be managing these pressures more effectively.
In contrast, Berkshire's non-insurance businesses, overseen by Greg Abel, demonstrated stronger performance. These operations, including manufacturers like Precision Castparts, utilities, and the BNSF railroad, are reportedly faring better than the insurance segment, even without major catastrophic events this year.
Despite the dip in profits, Berkshire Hathaway's substantial cash pile grew during the third quarter, reaching $377.4 billion, an increase from $365.5 billion at the end of June. The company's Class A stock price has recently surged, surpassing levels seen before Warren Buffett announced his plans for retirement, a transition that saw him relinquish the chairman title in September 2025 after stepping down as CEO in January of the same year.