The Omaha-based conglomerate reported a robust 34% increase in operating earnings to $13.5 billion, driven by strong performance across its insurance businesses. The filings revealed that both primary and reinsurance units posted pretax underwriting profits a sharp turnaround from the losses recorded a year ago.
Berkshire’s insurance division benefited from an unusually calm disaster season, which helped reduce claims and boost profitability. However, its auto insurer Geico saw a 13% drop in underwriting profit due to higher claim costs, even as it continued to expand its customer base.
Buffett Offloads $6.1 Billion in Stocks
Despite the record cash pile, Buffett sold $6.1 billion worth of shares during the quarter. The move aligns with his long-held strategy of maintaining liquidity to take advantage of future market opportunities. The firm’s net investment income, however, declined 13% to $3.2 billion because of lower short-term interest rates.
Interestingly, Berkshire has now gone five consecutive quarters without share buybacks, even as its stock has fallen nearly 12% since Buffett announced plans to retire as CEO at the end of 2025. Analysts say the pause in buybacks indicates Buffett’s preference for maintaining flexibility amid uncertain market conditions.
A Barometer of the U.S. Economy
Berkshire Hathaway’s diverse portfolio spanning insurance, energy, railroads, and manufacturing offers a broad view of the U.S. economy’s health. The strong performance of its operating businesses suggests underlying resilience despite macroeconomic headwinds such as slowing growth and inflation concerns.
Market analysts view Berkshire’s growing cash holdings as both a strength and a warning. While the company remains well-positioned to seize acquisition opportunities, the massive cash reserve also underscores Buffett’s cautious stance in a market lacking attractive valuations.
For global investors, the company’s quarterly results reaffirm its reputation as a reliable economic bellwether. More details about the filings are available through Bloomberg and official U.S. market disclosures.