Berkshire’s Buybacks Outpace Outside Stock Purchases as Insurance Profits Fall

Berkshire Hathaway spent $9.6 billion repurchasing its own shares in the third quarter, more than twice its spending on buybacks in the preceding quarter, as operating and overall earnings declined.

The company also sold more outside stocks than it bought during the period, according to figures reported by Fortune. The results offer a view of Berkshire’s capital allocation under CEO Greg Abel, who succeeded Warren Buffett at the start of 2026.

Buybacks more than doubled from the second quarter

The third-quarter repurchases compared with $4.5 billion in the second quarter and brought Berkshire’s total buybacks for 2026 to about $14.4 billion, according to CNBC. Fortune reported that Berkshire bought back roughly another $2 billion of its shares in the first four weeks of the fourth quarter.

Berkshire’s activity in other companies’ shares went in the opposite direction on a net basis. It bought $2.4 billion of outside stocks and sold approximately $2.8 billion during the third quarter, Fortune reported. Sales therefore exceeded purchases by about $400 million.

On a cost basis, holdings classified as “commercial, industrial, and other” rose by $2.3 billion, while holdings in “banks, insurance and finance” declined by $400 million, according to Fortune. A more detailed filing expected later in the month will show Berkshire’s precise portfolio moves, the publication reported.

The five largest equity holdings remained Alphabet, American Express, Apple, Bank of America and Coca-Cola, according to CNBC. Their presence among the largest holdings does not establish whether Berkshire changed the size of any individual position.

In July, Abel agreed to buy homebuilder Taylor Morrison for $6.8 billion, Fortune reported. The agreement followed a long period without a major Berkshire acquisition, during which Buffett had cited a lack of attractive bargains. Berkshire’s businesses include railroad BNSF, Brooks running shoes, See’s candies and Forest River recreational vehicles.

Cash measures moved in opposite directions

Berkshire reported $377.435 billion in cash in the third quarter, up about 3% from $365.514 billion in the second quarter, according to CNBC.

A narrower measure declined. Excluding rail and utility cash and Treasury bill payables, the balance was $352.3 billion, down 1.9% from the preceding quarter, CNBC reported. The two figures cover different amounts, so the increase in reported cash did not extend to the narrower balance.

Insurance profits fell as other businesses grew

Operating earnings from Berkshire’s wholly owned businesses were $12.705 billion, down 5.8% from $13.485 billion a year earlier, CNBC reported.

Insurance underwriting earnings fell 43% to $1.352 billion, while insurance investment income declined 14% to $2.734 billion. Earnings increased at Berkshire’s railroad, energy and manufacturing businesses, according to CNBC, but those gains did not prevent the overall operating decline.

The company’s overall earnings, which also include results from its stock portfolio, fell 28% to $22.112 billion from $30.796 billion a year earlier, CNBC reported. Investment gains were $9.407 billion. Fortune put the year-over-year decline in investment gains at 46%, using a rounded third-quarter figure of $9.4 billion.

Berkshire shares outperformed the S&P 500

Berkshire’s Class B shares had gained 13.6% year to date, versus 7.8% for the S&P 500, according to Fortune. The publication reported that investors had moved away from technology stocks associated with the AI boom while Berkshire shares outperformed.

Since Oct. 1, Berkshire stock had risen 14% while the S&P 500 had fallen about 4%, Fortune reported. CNBC said Berkshire’s Class A shares were up more than 12% over the past month, while the index had dropped 5.5% over that period.

Fortune also cited an earlier period of relative strength: Berkshire stock gained 4% in 2022 while the S&P 500 fell 18% during a Federal Reserve rate-hiking campaign.