The legendary investor remains cautious, raising his cash holdings to a record $382 billion in the third quarter of 2025.
According to the Q3 financial report released on November 1, Warren Buffett continued to be a net seller of stocks as he prepares to hand over the CEO position of Berkshire Hathaway to Greg Abel at the end of this year.
The investment giant sold $12.5 billion worth of stocks during the past quarter while purchasing only $6.4 billion, marking the 12th consecutive quarter of net stock sales for Berkshire Hathaway. Details of these transactions will be disclosed in a separate regulatory filing expected later this month.
Notably, Berkshire’s cash pile surged to a record high of $382 billion, while operating profits jumped 34%. At the same time, the Oracle of Omaha refrained from share buybacks for the fifth consecutive quarter, despite Berkshire Hathaway’s stock price having fallen 12% since the announcement of the succession plan in May.
As Berkshire Hathaway’s stock portfolio continues to shrink, the company has been redirecting cash flows into U.S. Treasury bonds. However, with recent declines in short-term interest rates, the conglomerate’s Q3 net investment income fell 13%, down to $3.2 billion.
According to analysts, Buffett’s cautious stance toward the stock market dates back to 2022, when the U.S. Federal Reserve (Fed) launched its most aggressive rate-hiking campaign in more than 40 years to curb inflation. Although the monetary tightening sharply reduced stock valuations, it still wasn’t enough to trigger the Oracle of Omaha’s famous bargain-hunting instincts.
Later, when the Fed pivoted toward rate cuts, the stock market rebounded strongly to new highs. More recently, even the major sell-off in April 2025—following President Donald Trump’s announcement of shock tariff measures—wasn’t enough to lure Buffett back into equities. During Q2, Berkshire remained a net seller, offloading $3 billion in stocks.
While technology stocks—especially those linked to AI—have led the market’s powerful recovery to new record highs, Berkshire Hathaway’s shares have moved in the opposite direction. Since May, when Buffett announced his plan to step down as CEO and hand the role to Greg Abel by the end of 2025, Berkshire’s shares have fallen 12%.
Some analysts suggest that although Buffett is expected to remain Chairman, he may be avoiding major investment decisions to smooth the leadership transition to Abel, who has taken on increasingly significant responsibilities in recent months.
However, last month Berkshire Hathaway made a surprise move by agreeing to acquire Occidental Petroleum’s chemical business for nearly $10 billion—a deal that could be viewed as Buffett’s final major acquisition. The transaction also strengthens Berkshire’s nearly 30% ownership stake in Occidental.
Notably, the October 2 announcement—Berkshire’s largest deal since acquiring the insurer Alleghany in 2022—was the first official company statement to include a quote from Greg Abel without mentioning Buffett’s name.
“It’s a masterstroke. This is absolutely a win-win deal for Berkshire Hathaway because it also benefits a company in which they already own a 30% stake,” said Doug Leggate, energy analyst at Wolfe Research, in an interview with Fortune last month. “The deal makes perfect strategic sense and will certainly deliver substantial benefits.”
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