Quick Read
-
Berkshire Hathaway (BRK-B) sits on $377 billion in cash and ramped up Q3 buybacks to $10 billion, signaling management sees value in the stock.
-
Berkshire has gained 14% this year while the S&P 500 rose 8%, as its railroad, insurance and energy mix sidestepped the AI rally.
-
Markel, often called a mini-Berkshire, runs the same float-funded model, while Progressive’s 88.7 combined ratio shows how fierce auto insurance competition remains.
-
Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor)
Berkshire Hathaway (NYSE: BRK-B) is still my favorite stock to hold for the long haul. The third-quarter results it reported on November 7, 2026, give me more reason to think so. Greg Abel took over from Warren Buffett as CEO on January 1, 2026. Buffett later stepped down as chairman, and his son Howard was named to replace him, as reported in September 2026. Berkshire’s market value is now about $1.225 trillion.
Berkshire leans toward railroads, insurance, energy, and consumer businesses, so it missed much of the AI rally. That caution is paying off now. BRK.B is up 13.58% year to date and 12.77% over the past month through the November 6 close. Over the same period, CNBC reported the S&P 500 up 7.8% year to date and down 5.5% for the month. Fortune called Berkshire a haven again as investors flee the AI rout.
1. A Huge Cash Pile Ready to Put to Work
Cash and Treasury bills rose 3% to $377.435 billion at the end of the third quarter, up from $365.514 billion in Q2. Excluding rail and utility payables, cash fell 1.9% to $352.3 billion. The decline came as Abel spent money on buybacks and acquisitions. That pile cushions Berkshire in a downturn and funds deals.
——
Learn 7 Ways To Generate Income With A $1,000,000+ Portfolio
If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life.
Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor)
——
2. Businesses Outside Insurance Are Growing
Operating earnings fell 5.8% to $12.705 billion from $13.485 billion a year earlier. Insurance underwriting earnings dropped 43%. Net earnings fell 28% to $22.112 billion. On the bright side, railroad, energy, and manufacturing earnings all grew. I watch operating earnings because net earnings move with stock prices. Management calls those quarterly gains “usually meaningless” and warns they can be “extremely misleading.” Auto insurance is still very competitive. GEICO’s rival Progressive (NYSE: PGR) posted a third-quarter combined ratio of 88.7.
