Warren Buffett’s cash fortress Berkshire closes gap with S&P 500 as AI worries depress Wall Street

( This is the Warren Buffett Watch newsletter, news and analysis on all things Warren Buffett and Berkshire Hathaway. You can register here to get it every Friday night in your inbox.)

The upturn for Berkshire shares has actually cut its underperformance versus the standard S&P 500 to 4.3 portion points from 12.2 portion points on October 29.

Operating revenues for Berkshire’s entirely owned business were up 34% to practically $13.5 billion in the 3rd quarter, with a 200% boost for insurance coverage underwriting earnings.

There were once again no stock buybacks, an indication Buffett does not believe Berkshire shares are considerably underestimated regardless of their weak point because Might.

Without any cash invested in redeeming Berkshire shares and equity sales surpassing purchases, the business’s September 30 money struck $381.7 billion, up 10.9% because completion of June.

If you deduct BNSF’s money and represent the timing of some Treasury expense purchases, the overall is $354.3 billion, up 4.3% from June.

Warren Buffett might be providing his last message as Berkshire’s CEO next Monday.

Today the business validated in a press release what it informed the Wall Street Journal recently.

” On Monday, November 10th, Berkshire will be releasing a news release which will consist of a message from Mr. Buffett relating to philanthropy, Berkshire and other matters that Berkshire investors and others might discover to be of interest.”

The philanthropy part will most likely be linked to his yearly Thanksgiving contributions to household structures.

The “Berkshire and other matters” part might be something of a goodbye message as he prepares to step down as CEO at the end of the year.

While he will stay chairman of the board, he will not be on phase at next May’s conference and brand-new CEO Greg Abel will be composing the yearly letter to investors.

Given that he seems deliberately restricting his future chances to talk to investors and the rest of the world, Buffett might be all set to have his last word now.

We will not understand for sure up until next Friday’s release of Berkshire’s Q3 equity portfolio photo, however it appears like there were more sales of Apple shares throughout the 3 months ending September 30.

CNBC.com’s Yun Li keeps in mind Berkshire’s 10-Q last Saturday reported a $1.2 billion decrease in its expense basis for customer item stocks, which would consist of Apple.

She likewise mentions that Apple’s 24% gain throughout the quarter would have supplied a chance for Buffett to secure more revenues.

Apple stays Berkshire’s biggest equity holding, presently valued at $75.2 billion, however it has actually cut the position by 69% over the previous 2 years.

Barron’s divides that $1.2 billion expense basis stop by $35, Apple’s per-share basis, to approximate Berkshire might have offered 35 million shares for around $8 billion, based upon Apple’s typical rate of $230 per share throughout the quarter.

With Apple reporting in its 10-Q that it had $12.4 billion in Q3 equity sales, Barron’s recommends a great deal of the staying $4.4 billion might be Bank of America sales, another huge position that Berkshire has actually been dramatically minimizing.

That stake has actually been cut by around 40% because the start of in 2015.

At $32.2 billion, it is Berkshire’s 3rd biggest equity holding.

All 5 of the stocks are at or near all-time highs.

The combined worth of Berkshire’s reported holdings is approaching $33 billion, up from $31 billion simply one month earlier.

The figure might be even greater presuming a few of Berkshire’s continued purchasing has actually not yet been openly exposed.

Berkshire Hathaway has a brand-new caution about YouTube videos with “images or AI produced images impersonating” Warren Buffett.

A press release Thursday stated, “Typically, such video pictures of Mr. Buffett might appear to appear like him however the noise of the impersonator speaking in a really flat monotone voice is plainly not the voice of Mr. Buffett.”

It included, “Mr. Buffett is worried that these kinds of deceptive videos are ending up being a dispersing infection. People who are less knowledgeable about Mr. Buffett might think these videos are genuine and be deceived by the contents of these videos.”

In April, a Berkshire release pointed out undefined “reports presently distributing on social networks” about “remarks apparently made” by Buffett and stated, “All such reports are incorrect.”

Buffett likewise cautioned investors at the 2024 Berkshire yearly conference that AI’s capability to develop phony audio and video might make scamming “the development market of perpetuity.”

Some links might need a membership:

Warren Buffett discusses why financiers ought to take a look at their stocks the very same method they would take a look at owning a farm or a house.

WARREN BUFFETT: If you have a personality that when others are afraid, you’re going to get terrified yourself, you understand, you are not going to make a great deal of cash in securities gradually, in all likelihood.

You understand, individuals actually– if they didn’t take a look at quotes– however naturally, the entire world is advising them to take a look at quotes, and more than that, do something based upon little modifications in quotes.

However believe just how much more reasonable– we have actually spoken about it in the past– however believe just how much more reasonable investing in a farm is than the method lots of people purchase stocks.

If you purchase a farm, do you get a quote next week, do you get a quote next month? If you purchase an apartment building, do you get a quote next week or month?

No, you take a look at the apartment building or the farm, and you state, “I anticipate it to produce a lot of bushels of soybeans and corn, and if it does that, it satisfies my expectations.”

If they purchase a stock and they believe if it increases it’s terrific, and if it decreases it’s bad.

We believe simply the opposite. When it decreases, we like it, due to the fact that we’ll purchase more. And if it increases, it eliminates us to purchase more.

And I– you understand– all kinds– you understand, Ben Graham blogged about it. It’s been described. However if you can’t obtain because psychological mindset, you’re going to be terrified whenever everyone else is frightened.

And to anticipate someone else to inform you when to purchase and for that reason get your nerve back up or something, you understand–

I might get this fellow’s nerve up considerably by stating this is a terrific time to purchase, and after that a week from now he ‘d face someone else that informs him the world is concerning an end and he ‘d offer.

I suggest, he’s a broker’s buddy, however he’s not going to make a great deal of cash.

Berkshire’s leading holdings of divulged openly traded stocks in the U.S., Japan, and Hong Kong, by market price, based upon today’s closing rates.

Holdings are since June 30, 2025 as reported in Berkshire Hathaway’s 13F filing on August 14, 2025, other than for:

The complete list of holdings and existing market price is offered from CNBC.com’s Berkshire Hathaway Portfolio Tracker.

Please send out any concerns or remarks about the newsletter to me at alex.crippen@nbcuni.com. (Sorry, however we do not forward concerns or remarks to Buffett himself.)

If you aren’t currently signed up for this newsletter, you can register here.

Likewise, Buffett’s yearly letters to investors are extremely suggested reading. There are gathered here on Berkshire’s site.

— Alex Crippen, Editor, Warren Buffett Watch