Date: Monday, November 10, 2025
Key takeaways
- Berkshire’s cash and T‑bill hoard hit an all‑time high of about $381.7 billion in Q3 2025, underscoring a very cautious stance on valuations.
- The stricter accounting view in Berkshire’s own 10‑Q puts cash, cash equivalents and T‑bills (net of unsettled purchases) at $354.3 billion—both figures matter for how investors frame “dry powder.” Berkshire Hathaway
- Operating earnings surged to $13.49 billion in Q3, led by a big rebound in insurance underwriting; BNSF and Berkshire Hathaway Energy (BHE) also contributed meaningfully.
- No share buybacks in Q3—and none in the first nine months of 2025—suggest management doesn’t see Berkshire stock as cheap relative to intrinsic value at recent prices.
- Berkshire agreed last month to buy Occidental’s OxyChem unit for $9.7 billion in cash, its largest deal since 2022; closing is expected in Q4 2025.
- Buffett is set to publish a letter to his children and shareholders today (Nov 10); Greg Abel will write the annual letter after he becomes CEO.
- The portfolio has been a net seller of equities for the 12th straight quarter—press tallies show ~$12.5B sold vs. ~$6.4B bought in Q3; the 13F due Friday (Nov 14) should reveal which holdings moved.
- Macro watch: October CPI lands Thursday (Nov 13) at 8:30 a.m. ET—often a key swing factor for insurers’ investment income expectations.
Why the cash mountain matters before the open
Berkshire finished Q3 with roughly $381.7 billion in cash and short‑term Treasuries—a U.S. corporate record. The scale of that reserve signals management’s caution on dealmaking and public‑equity valuations heading into year‑end, and it gives Berkshire unusual optionality if markets wobble. Note that Berkshire’s 10‑Q also highlights a more conservative, netted measure (cash, equivalents and T‑bills of $354.3 billion) after subtracting unsettled Treasury purchases; investors should be clear which metric they’re using when comparing across periods and peers.
Earnings check: insurance strength, steady rails/energy
Q3 operating earnings jumped to $13.49 billion from $10.09 billion a year ago, powered by a swing to $2.37 billion in insurance underwriting profit. BNSF earned $1.45 billion and BHE $1.49 billion in the quarter, while manufacturing, service and retailing contributed $3.62 billion. Insurance float rose to about $176 billion at September 30. On a per‑share basis, the operating result equates to roughly $9,376 per Class A share (simple division using reported totals).
No buybacks—again
Berkshire did not repurchase any Class A or Class B shares in Q3, and there were no buybacks in the first nine months of 2025. Given Berkshire’s long‑standing policy to buy only when shares trade below a conservative estimate of intrinsic value, the pause suggests management hasn’t seen a sufficiently wide discount lately.
Deal flow: the OxyChem acquisition
On October 2, Berkshire agreed to acquire Occidental Petroleum’s chemicals business, OxyChem, for $9.7 billion in cash. The transaction, expected to close in Q4 2025, would add a large petrochemicals platform alongside Berkshire’s existing Lubrizol operations and modestly redeploy a fraction of the cash pile into a controlled, cash‑generative asset.
Litigation overhang: PacifiCorp
BHE subsidiary PacifiCorp said a judge’s move to accelerate Oregon wildfire trials could strain liquidity and pressure credit metrics, though the utility expects to have sufficient liquidity “beyond a year.” PacifiCorp has set aside billions and faces sizable claims tied to the 2020 fires; management is appealing prior awards. Investors should watch for any credit‑rating developments. Reuters
Leadership transition in focus today
Berkshire’s last quarterly report before Warren Buffett hands the CEO role to Greg Abel (Buffett remains chairman) emphasized caution and liquidity. Separately, Buffett plans to release a letter to his children and shareholders today (Nov 10), while Abel will take over the annual shareholder letter after he becomes CEO—useful context for how communication may evolve.
Portfolio flow and what the 13F might show
Press analyses based on Berkshire’s filings indicate the company remained a net seller of stocks in Q3 (about $12.5B sold vs. $6.4B bought). Observers will parse Friday’s 13F for signs of further trimming in large holdings—Apple and Bank of America are the usual suspects—alongside adds or new positions. Until the 13F posts, those specifics remain educated inferences.
Valuation context from the filings
Berkshire reported shareholders’ equity of ~$698.2 billion at Sept. 30 and 1,438,223 Class A‑equivalent shares outstanding. That implies a book value of roughly $485,000 per A share—useful as a long‑term yardstick for price‑to‑book watchers ahead of today’s session. (Calculation based on reported equity and share count in the 10‑Q/press materials.)
What to watch the rest of this week
- Monday (Nov 10): Buffett’s letter release; look for tone and any capital‑allocation hints going into the handoff to Abel.
- Thursday (Nov 13): October CPI at 8:30 a.m. ET—implications for T‑bill yields and investment income across Berkshire’s insurance operations.
- Friday (Nov 14): Q3 13F portfolio disclosure after the close; expect headlines on any large trims/additions.
Subsidiary pulse you may have missed
BNSF’s operating performance improved year over year, with Q3 net income of about $1.45 billion and an operating ratio improvement versus 2024—helped by better intermodal trends and cost controls—supporting the “steady eddy” contributions from rails into year‑end. Berkshire Hathaway+1
Housekeeping from the filings that could move narrative
- Berkshire logged $10.4 billion of taxable gains on equity securities sold in Q3—another clue the team realized profits in names with large embedded gains.
- The company reiterated there were no share repurchases in Q3, and it will not repurchase if doing so would take consolidated cash, equivalents and T‑bills below $30 billion.
Bottom line for BRK.A before the bell
The near‑term setup hinges on three threads: (1) massive liquidity giving Berkshire the luxury of patience, (2) an active yet selective capital‑allocation stance (no buybacks, a targeted OxyChem purchase), and (3) a closely watched leadership transition that continues today with Buffett’s letter. Layer on CPI and Friday’s 13F, and this is a catalyst‑heavy week for the Berkshire narrative—even if the A‑shares themselves don’t trade much premarket.
Sources
- Berkshire Hathaway Q3 2025 news release and segment results.
- Berkshire Hathaway Form 10‑Q (quarter ended Sept. 30, 2025): cash/T‑bill detail, equity/tax items, and repurchase disclosure.
- Reuters coverage of record cash and PacifiCorp wildfire‑trial liquidity risks.
- Berkshire–OxyChem $9.7B deal reporting.
- 13F timing and Q3 net‑selling context.
- BLS CPI release schedule (Oct 2025 CPI due Nov 13).
Disclaimer: This article is for informational purposes only and is not financial advice.
