Berkshire cash sets record as profit rises, signaling caution ahead of Buffett exit

Core Insights - Berkshire Hathaway remains cautious about market conditions, accumulating a record cash reserve of $381.7 billion while profits increased [1][2] - The company has sold more stocks than it has purchased for 12 consecutive quarters, maintaining an equity portfolio valued at $283.2 billion [1][2] - Operating profit for the third quarter rose 34% to $13.49 billion, exceeding analyst expectations, while net income increased 17% to $30.8 billion [2][7] Financial Performance - Revenue growth was limited to 2%, which is slower than the overall growth rate of the U.S. economy [2] - Lower insurance losses contributed to the increase in operating profit, which translates to approximately $9,376 per Class A share [2][7] Market Position and Strategy - Economic uncertainty and declining consumer confidence have negatively impacted sales growth in various sectors, including homebuilding and consumer goods [3] - Berkshire Hathaway has not repurchased any of its own stock for five consecutive quarters, despite its stock price lagging behind the broader market [2][3] Leadership Transition - Warren Buffett is preparing to step down as CEO after a six-decade tenure, with Vice Chairman Greg Abel set to take over [4] - Abel is expected to adopt a more hands-on management style, though the future use of the company's cash reserves remains uncertain [4] Recent Transactions - Berkshire Hathaway plans to allocate $9.7 billion of its cash to acquire Occidental Petroleum's OxyChem chemicals business, a deal announced on October 2 [5]