Berkshire Hathaway buys back $9.6 billion in stock despite profit decline

Berkshire Hathaway repurchased $9.6 billion worth of its own stock during the third quarter, according to ABC News and nvdaily.com. Despite the sizable buyback, the company's overall profit declined by more than 28%, largely due to changes in the value of its investments.

Geico, Berkshire Hathaway's insurance unit, contributed significantly to the profit decline. Its underwriting profit dropped to $982 million from $1.77 billion the previous year, as reported by ABC News. The company faces challenges with declining insurance premiums and rising claim costs, noted CFRA Research analyst Cathy Seifert.

Berkshire Hathaway's underwriting profit across all insurers fell to $1.35 billion from $2.37 billion last year. However, the company's cash reserves grew to $377.4 billion by the end of the third quarter, up from $365.5 billion at the end of June, according to ABC News.

The buybacks likely paused recently as Berkshire's Class A stock price surged past $878,000, exceeding levels before Warren Buffett's announced retirement plans in May 2025. Buffett stepped down as chairman in September and relinquished the CEO role earlier in the year to Greg Abel, ABC News reported.

Investor Chris Ballard commented that Geico's lower profits reflect renewed investment in marketing to attract customers, including efforts involving its iconic spokeslizard. This strategic shift may explain the temporary dip in profitability.

Berkshire Hathaway's stock repurchase and profit results were also covered by reflector.com, nvdaily.com, and wokv.com, confirming the company's recent financial moves and challenges.