Unease About Warren Buffett’s Retirement Overshadows Berkshire Earnings Beat

Core Insights - Berkshire Hathaway reported a 33% year-over-year increase in operating profit, reaching $13.5 billion, and a 17% increase in net income to $30.8 billion, surpassing market expectations [2] - Despite strong earnings, Berkshire's Class B shares fell 0.3% following the report, indicating a lack of investor enthusiasm [2] - The company has been a net seller of stocks for 12 consecutive quarters, offloading $6 billion worth, reflecting Warren Buffett's cautious stance on equity valuations [3] Financial Performance - Operating profit increased by 33% year-over-year to $13.5 billion [2] - Net income rose by 17% to $30.8 billion, combining earnings with investment gains [2] - Berkshire's cash reserves reached a record $358 billion at the end of September, providing significant liquidity for future investments [4] Leadership Transition - Warren Buffett plans to step down as CEO at the end of the year, with Greg Abel set to take over, raising concerns among investors [4] - Since the announcement of Buffett's transition, Berkshire's shares have declined approximately 12%, underperforming the S&P 500's 20% gain [4] - Buffett's cash hoarding strategy has been facilitated by high interest rates in recent years, with $17 billion generated from interest and dividends in the first nine months of 2025 [4]