Berkshire Hathaway Q3 2025: Record $382B Cash Pile Amid 34% Earnings Jump and Continued Equity Selling

Reddit investors are actively debating Berkshire’s Q3 performance and strategy across multiple subreddits with 656 upvotes and 124 comments:

• Operational Performance
  : Users noted revenue grew only ~2.2% YoY despite the 33% earnings jump, with insurance underwriting showing significant improvement while industrials remained strong and utilities weak Reddit

• Cash Strategy Debate
  : Strong disagreement emerged over Buffett’s motives. Some users like VanilaaGorila suggest market timing, while igpila and himynameis_ argue it reflects scarcity of opportunities at Berkshire’s scale rather than timing attempts

• Valuation Concerns
  : Current P/B ratio of 1.46 is noted as near 10-year average, with themagicalpanda expressing doubt about dips below $400 and suggesting buying opportunities around P/B ~1.3

• Performance Context
  : joe4942 highlighted BRK.B’s underperformance versus QQQ (+5.6% vs +29% over 1 year), though HistorianEvening5911 countered that BRK.B outperformed over 5 years (128% vs 113%)

• Historical Parallels
  : Waterprop and others drew comparisons to past periods when high cash levels and market downgrades preceded market tops, though some view the cash as a crash cushion

Berkshire’s Q3 2025 results confirm the Reddit discussion metrics while providing additional context:

• Earnings Drivers
  : Operating earnings reached $13.4-13.5 billion, with insurance underwriting income surging from $750 million to $2.37 billion as a key growth driver Yahoo Finance

• Equity Activity
  : The company sold $12.5 billion of stocks while buying $6.4 billion, resulting in $6.1 billion of net sales - marking the 12th consecutive quarter of net selling Fortune

• Capital Allocation
  : No share buybacks occurred for the fifth consecutive quarter, contributing significantly to cash accumulation Seeking Alpha

• Cash Position
  : The record $381.7-382 billion cash pile represents approximately 25% of Berkshire’s market capitalization, providing substantial dry powder for future opportunities The Motley Fool

The Reddit and research findings align on core metrics but diverge on strategic interpretation:

: Both sources confirm the $382B cash pile, 33-34% earnings growth, $6.1B net equity sales, and absence of buybacks. Insurance underwriting improvement is correctly identified as a key earnings driver.

: Reddit debates center on whether Buffett’s actions represent market timing versus disciplined capital allocation. Research suggests the latter, with Buffett finding few opportunities at Berkshire’s scale rather than attempting to time market tops Forbes.

: The 1-year underperformance versus QQQ noted by Reddit users reflects Berkshire’s defensive positioning, while 5-year outperformance validates the long-term strategy despite short-term lag.

:

• Opportunity Cost
  : $382B earning ~5% in short-term instruments represents significant potential drag if markets continue rising
• Valuation Pressure
  : Continued underperformance versus growth indices could pressure the stock if cash remains undeployed
• Succession Uncertainty
  : The cash buildup may reflect transition caution as leadership change approaches

:

• Market Correction Deployment
  : Record cash position provides maximum flexibility during market dislocations
• Yield Advantage
  : 5% short-term yields provide meaningful income while waiting for opportunities
• Insurance Tailwinds
  : Improved underwriting margins suggest sustainable earnings growth from core operations
• Buyback Potential
  : Accumulated cash could fuel significant share repurchases if valuation becomes attractive

The current strategy appears to prioritize capital preservation over immediate returns, consistent with Berkshire’s long-term value investing philosophy despite short-term performance concerns.