Berkshire Cash & Profit Soars Ahead of Buffett Exit

 By MD Rubel islam: Global Finance News

Updated: November 1, 2025 · 9:00 PM GMT+6

Berkshire Hathaway’s cash reserves hit $381.7B as profits climb, marking caution ahead of Buffett’s exit.

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Main Topic 

Berkshire Hathaway’s record cash reserves and rising profits reflect Warren Buffett’s cautious investment approach ahead of his departure, as Greg Abel prepares to lead the conglomerate into a new era of strategic growth and market discipline.

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Berkshire's Cash Swells as Profit Rises: A Cautious Signal Before Buffett’s Exit

Berkshire Hathaway’s Record Cash Reserve — A New Chapter Before Buffett’s Departure

Global investment giant Berkshire Hathaway once again proves it remains the “King of Patience” in the market.

In Q3 2025, the company reported record cash holdings of nearly $381.7 billion, signaling deep caution toward market volatility.

The mastermind behind this massive reserve is Warren Buffett, who plans to retire as Chief Executive Officer by the end of the year.

This raises a vital question — is Buffett’s departure a signal of caution for the company’s future?

Berkshire Cash Reserves and Profit Rise — Two Sides of the Story

In the third quarter, Berkshire Hathaway’s operating profit jumped 34% to $13.49 billion.

At the same time, net income climbed 17% to $30.8 billion, compared to the previous year.

The rise in profits came mainly from its insurance, reinsurance, and investment portfolio businesses.

However, Berkshire continued its streak of no share buybacks for five consecutive quarters.

This clearly reflects a market caution approach.

Why Is Berkshire So Cautious in the Market?

Buffett has always prioritized patience and security in investing.

With the U.S. stock market facing uncertainty, Berkshire prefers holding cash rather than making aggressive new investments.

Its equity portfolio, including Apple (AAPL) and American Express (AXP), remains strong but with minimal new buys.

For the 12th consecutive quarter, Berkshire was a net seller of stocks.

This shows that investor sentiment across the market is cautious.

Buffett’s Departure — Greg Abel Steps Into Leadership

Corporate Succession Plan

At age 95, Warren Buffett is set to retire as CEO by year-end.

His successor, Greg Abel (63), has long managed Berkshire’s utility and energy divisions.

Known as a hands-on manager, Abel makes quick, practical decisions.

Analysts believe his leadership will ensure a smooth corporate succession at the Omaha-based conglomerate.

 “Canada GDP Dips, Gold Gains on Fed Cut” fits naturally — it connects to market caution, global sentiment, and investment tone.)

Occidental Petroleum and OxyChem — A Strategic Investment

Berkshire recently announced plans to acquire Occidental Petroleum’s (OXY) OxyChem unit for $9.7 billion.

This move signals that the company is still investing — but selectively, with a long-term focus.

Such strategic acquisitions continue to diversify Berkshire’s investment portfolio.

It also reflects Buffett and 

l’s cautious optimism, ensuring liquidity while seeking value.

That balance defines Berkshire’s conservative yet effective approach.

Berkshire Stock Performance — Lagging Behind the Market

Stock Underperformance vs S&P 500

Berkshire stock has fallen 12% since Buffett announced his upcoming retirement.

It’s currently 32 percentage points behind the S&P 500.

This underperformance reflects investor concerns over the management transition and Berkshire’s conservative stance.

However, many analysts view this as a temporary phase during the leadership handover.

Long-term investors remain confident in the company’s fundamentals.

Dividend Speculation — The First in Decades?

Berkshire Hathaway hasn’t issued a dividend since 1967.

But now, with record cash reserves, speculation is growing that Greg Abel might introduce the company’s first-ever dividend.

If that happens, it could rejuvenate investor sentiment and boost stock outlook significantly.

Such a decision would mark a major policy shift from Buffett’s traditional philosophy.

Analysts call it a potential “symbolic change” in the Abel era.

The Berkshire Empire — A Vast Business Network

Berkshire owns nearly 200 businesses, spanning multiple industries:

Geico Insurance, Precision Castparts, Pilot Travel Centers, Alleghany Insurance, and iconic consumer brands like Dairy Queen, Fruit of the Loom, and See’s Candies.

It also operates in utilities, renewable energy, and industrial manufacturing.

This diversified portfolio makes Berkshire resilient across economic cycles.

It’s what keeps the conglomerate strong, even in cautious times.

Market Caution or Strategic Pause?

Analysts suggest that Berkshire’s record cash holdings are a sign of a strategic pause, not fear.

The company seems to be waiting for undervalued opportunities where returns will be higher.

This reflects the timeless Buffett strategy — “Be fearful when others are greedy, and greedy when others are fearful.”

In essence, Berkshire is positioning itself for the next big acquisition.

Patience, as always, remains its greatest strength.

The Road Ahead — Berkshire Hathaway in the Abel Era

Under Greg Abel’s leadership, Berkshire is likely to expand into renewable energy and infrastructure investments.

He may also focus on enhancing the insurance and utilities divisions, driving long-term growth.

If he can balance market caution with strategic expansion, Berkshire could outperform the S&P 500 again.

His leadership will define the next chapter of this legendary company.

Investors are closely watching every move.

Conclusion — From Buffett to Abel: The End of an Era, The Start of Another

Berkshire Hathaway stands at a historic crossroads.

Buffett’s departure marks the end of one era, while Greg Abel’s arrival begins another.

With massive cash reserves, solid profit growth, and measured market caution, the company remains in capable hands.

The world is watching how Berkshire adapts in this new phase.

One thing is certain — patience and discipline will continue to guide its legacy.

Read more details  Berkshire Cash & Profit Rise Ahead of Buffett Exit