ii view: Berkshire Hathaway doubles share buybacks in Q3
Now run by new head Greg Abel and holding major investments in Mag7 companies Apple and Alphabet. Buy, sell, or hold?
9th November 2026 16:10
by Keith Bowman from interactive investor
Third-quarter results to 30 September
- Operating earnings down 5.8% to $12.7 billion
- Net earnings attributable to shareholders down 28% to $22.1 billion
- Cash held of $377.4 billion (£283 billion), up from $365.5 billion in Q2
- Share buyback of $9.6 billion, up from $4.5 billion in Q2
ii round-up:
Berkshire Hathaway Inc Class B (NYSE:BRK.B)'s relatively new head Greg Abel showed increased appetite for share buybacks during this latest third quarter period to late September.
Operating profit excluding gains or losses from its investment portfolio fell 5.8% to $12.7 billion (£9.5 billion). Numbers were hit by a 43% drop in insurance underwriting profits to $1.35 billion and 14% fall in insurance investment income to $12.73 billion. Share buybacks more than doubled to $9.6 billion from $4.5 billion in the second quarter.
Shares in the S&P 500 company fell 0.5% having come into these latest numbers up by 14% so far in 2026. Both the Dow Jones and S&P 500 are up by around 7% and 8% respectively year-to-date.
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Berkshire operates over 90 businesses including insurance operations, railway and energy companies and manufacturing businesses. Although still working for Berkshire, founder Warren Buffett stepped down from running the company late last year.
Countering falls in insurance profits, manufacturing, service and retailing sector profits climbed to $4 billion from $3.6 billion in Q3 2025. Railway, or BNSF profit of $1.73 billion was up from $1.45 billion a year ago, with those for Energy related businesses improving to $1.6 billion from $1.49 billion.
Berkshire profits including investment gains and losses fell to $22.1 billion. Berkshire investments include Apple Inc (NASDAQ:AAPL), Alphabet Inc Class A (NASDAQ:GOOGL), American Express Co (NYSE:AXP), Bank of America Corp (NYSE:BAC) and Coca-Cola Co (NYSE:KO).
Group cash held of $377.4 billion (£283 billion) as of late September is up from $365.5 billion at the end of the second quarter.
ii view:
With a history dating back to 1839, Warren Buffet took control of Berkshire Hathaway in 1965. It is now a conglomerate and investment company headquartered in Omaha, Nebraska. Berkshire shares are traded on the New York Stock Exchange as both ‘A’ and ‘B’ shares. The original ‘A’ shares carry considerably more voting power. Group CEO Gregg Abel joined Berkshire in 2000.
For investors, the death of key Berkshire executive Charlie Munger and the stepping back of legendary investor Warren Buffett may reduce a key attraction. The continued lack of a major acquisition for Berkshire to spend its cash mountain on may be frustrating some investors. Costs generally for businesses remain elevated, while earnings for insurance underwriting can prove volatile given potential exposure to events such as wildfires, floods and earthquakes.
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To the upside, a new willingness to execute share buybacks, given none during 2025, gives some potential share price support moving forward. Buffett’s judgement in making Greg Abel CEO will have played its part in his appointment. The group’s diversity of businesses regularly sees gains for one division countering falls for another, while the absence of any major business acquisitions likely underlines management’s patience in waiting for an appropriate value buying opportunity.
In all, Buffett deciding to step back will likely leave some investors reassessing prospects. However, Greg Abel’s own experience, a vast cash mountain and Warren Buffett’s continuing guidance likely leave others willing to remain long-term holders.
Positives:
- Diverse portfolio of industries and businesses
- Significant cash held
Negatives:
- Subject to macro-economic and geopolitical uncertainties
- An eventual full exit by Warren Buffett
The average rating of stock market analysts:
Hold
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