Berkshire Hathaway shares climbed this week, bucking a broader Wall Street downturn driven by renewed concerns over inflated artificial intelligence valuations and slowing U.S. economic momentum.
The conglomerate’s Class B and Class A shares advanced 4.5% following a robust earnings report, even as the Nasdaq tumbled 3% — its steepest weekly decline since April.
According to CNBC, the gains trimmed Berkshire’s underperformance gap against the S&P 500 to 4.3 percentage points, down from 12.2 percentage points in late October. The rally came after Warren Buffett’s company posted a 34% jump in third-quarter operating profits to nearly $13.5 billion, underscored by a sharp rebound in its insurance business, where underwriting income surged 200%.
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The report, which reflected broad strength across Berkshire’s subsidiaries, also highlighted the company’s growing liquidity position. As of September 30, Berkshire’s cash pile stood at $381.7 billion, up 10.9% from the end of June — a new record. Adjusted for BNSF Railway’s cash and the timing of Treasury bill purchases, the total comes to about $354.3 billion, marking a 4.3% rise over the same period.
Notably, Berkshire made no share repurchases during the quarter, signaling Buffett’s belief that the stock remains fairly valued despite its sluggish performance earlier in the year. Equity sales once again outpaced purchases, a conservative stance consistent with Buffett’s cautious view of the current market environment.
While tech-heavy indices have faltered under pressure from overvaluation worries, Berkshire’s diversified portfolio — spanning insurance, railroads, utilities, and consumer goods — continues to benefit from its defensive positioning. Analysts say the company’s record cash reserves give it significant flexibility to act if market volatility creates new value opportunities.
Adding intrigue to the week’s developments, Berkshire confirmed that Warren Buffett will issue a special message on November 10, fueling speculation that it could be one of his final public notes as CEO. In a brief statement, the firm said the release will address “philanthropy, Berkshire, and other matters that shareholders and others may find of interest.” The announcement follows reports suggesting Buffett has been preparing to formalize more of his long-term succession and giving plans.
Meanwhile, in a separate move that underscores Buffett’s continued confidence in Japan’s corporate sector, Berkshire has reportedly hired banks to arrange another yen-denominated bond sale, according to Bloomberg and Nikkei. The company has also filed a preliminary prospectus with the U.S. Securities and Exchange Commission.
It would mark the second yen borrowing by Berkshire this year — a clear signal that it intends to deepen its investments in Japan’s five major trading houses, which it began acquiring stakes in back in 2019. Those holdings have become a core part of Berkshire’s international strategy, reflecting Buffett’s admiration for the trading companies’ diversified business models and shareholder-friendly practices.
The market welcomed the news: shares in four of the five trading houses advanced this week, led by Itochu’s 6.5% gain. All five stocks now trade near all-time highs, pushing the combined value of Berkshire’s disclosed holdings to roughly $33 billion, up from $31 billion just a month earlier. The total could be even higher if additional, undisclosed purchases have been made in recent weeks.
As Wall Street recalibrates its expectations for AI-driven growth and tech valuations cool, Buffett’s traditional, cash-rich discipline still resonates with investors seeking stability amid market froth – with analysts attributing it to Berkshire’s rise.
Whether his message on Monday turns out to be a philosophical send-off or another sober assessment of markets, it is likely to capture the attention of investors across the globe — just as Berkshire’s balance sheet continues to do.