Berkshire Hathaway more than doubles its buybacks to $9.6 billion as profit from its insurance policies falls 43%

The stories

12 on this beat today.

Every story told the same way: what happened, who is involved, why it matters, how it works, the truth and the good news.

1. 01

   Berkshire Hathaway more than doubles its buybacks to $9.6 billion as profit from its insurance policies falls 43%

   $9.6bn

   of its own shares Berkshire bought back, July to September

   more than double the $4.5bn of the three months before [1]

   43%

   drop in profit from Berkshire's insurance policies

   Geico, its car insurer, cut prices to win back drivers [3]

   14%

   less earned from investing the insurers' money

   mainly because short-term interest rates were lower [4]

   $377.4bn

   held in cash and short-term US government bills

   it also sold $2.8bn of other firms' shares and bought $2.4bn [6]

   What happened

   • Berkshire Hathaway bought back $9.6 billion of its own shares between July and September. [1]
   • That is more than double the $4.5 billion it bought in the three months before. [1]
   • Its operating profit, from the businesses it owns outright, fell 5.8% to $12.7 billion. [1]
   • The fall came from its insurers, whose profit from selling policies dropped 43%. [1]
   • Its insurers made $1.35 billion from policies, against $2.37 billion a year earlier. [2]
   • Geico, its car insurer, made $982 million of that, down from $1.77 billion. [2]
   • Geico cut its prices to win back drivers it lost during a years-long push to cut costs. [3]
   • It also spent more on adverts, AP reported. [2]
   • Geico paid out 76.6% of what customers paid it as claims, up from 71.5% a year earlier. [3]
   • Its insurers also earned 14% less, $2.73 billion, from investing the money they hold. [1]
   • Lower short-term interest rates caused most of that fall. [4]
   • Its railway, power and factory businesses did better. [3] Profit at BNSF, its railway, rose 19%. [3]
   • BNSF earned 10.5% more per railcar, partly from extra fees charged for dearer fuel. [4]
   • Berkshire Hathaway Energy, its power and gas business, made 8.3% more, $1.6 billion. [4]
   • Precision Castparts, which sells aircraft and turbine parts, raised its profit 30%. [3]
   • Total profit fell 28% to $22.1 billion, and gains on its shares fell by nearly half. [1]
   • That total counts price moves on shares Berkshire has not sold, so Berkshire tells investors to ignore its swings. [3]
   • Berkshire's shares rose more than 5% this week. [8] The S&P 500, the main index of big US firms, fell almost 2.7%. [8]
   • CNBC says investors moved money out of technology shares into firms like Berkshire, which has little to do with AI. [8]
   • Berkshire held $377.4 billion in cash and short-term US government bills at the end of September. [5]
   • It bought $2.4 billion of other companies' shares in the quarter and sold $2.8 billion. [6]
   • Abel restarted buybacks this year, judging the shares below their 'intrinsic value', what the business is really worth. [4]

   Who is involved

   Berkshire is the company Warren Buffett ran for 60 years. [3] It owns insurers, the BNSF railway, power firms and shares in Apple and Alphabet. [3]

   Greg Abel took over from Warren Buffett as chief executive in January. [2] Buffett is 96, and Abel is 64. [3]

   • Greg Abel Berkshire Hathaway's chief executive since January, aged 64; he more than doubled its buybacks
   • Warren Buffett ran Berkshire for 60 years; now 96, he handed the top job to Abel in January
   • Geico Berkshire's car insurer; it cut prices to win back drivers, and its profit from policies fell
   • Cathy Seifert an analyst at CFRA Research; she called Geico's results weak next to Allstate and Progressive

   How it unfolded

   1. Saturday results
   2. Next week the list of shares it bought and sold [7]
   3. May 2025 Buffett says he will step down as chief executive [8]
   4. Jan 2026 Greg Abel takes over as chief executive [2]
   5. Sep 2026 Buffett's son Howard becomes chairman [3]
   6. Sat 7 Nov third-quarter results: $9.6bn of buybacks [1]

   Why it matters

   Many investors read Berkshire's results as a sign of how the US economy is doing. [3]

   Fortune says Berkshire also held up in 2022, rising 4% while the S&P 500 fell 18%. [6]

   How it works

   Insurers call this the loss ratio: the share of customers' payments that goes back out as claims. [3]

   Cathy Seifert, an analyst at CFRA Research, said Geico's prices were falling while the average claim cost more. [2] So less of each payment was left. [3]

   Seen it before

   A lemonade stand that cuts its price while lemons get dearer keeps less from every cup.

   Why an insurer earns money on cash it still owes its customers

   Insurance economists call it float: customers pay before their claims arrive, and the insurer invests that money while it waits.

   The twist

   An insurer can earn more from holding its customers' money than from the policies they bought: Berkshire's insurers made $2.73 billion investing it and $1.35 billion on the policies.

   The picture

   Investing the money held$2.73 billion

   Selling policies$1.35 billion

   Step by step

   1. 1 Customers pay their premiums now
   2. 2 Claims arrive months or years later
   3. 3 The insurer invests the money while it waits
   4. 4 Short-term interest rates set what that money earns
   5. 5 When rates fall, the income falls with no claim changing

   The same force, elsewhere today

   Where this chain is also running, in today's other stories.

   • The US price figure due on Tuesday

     a December rise in the US central bank's rate would lift what short-term US government bills pay, and Berkshire keeps $377.4 billion in cash and such bills

   Where you've seen this

   Gift cards

   the shop has your money from the day you buy the card until the day it is spent

   Airline tickets

   a flight is paid for weeks ahead, so the airline holds the cash before it flies you

   School trip deposits

   the school collects the money in autumn and pays the coach company in summer

   The catch

   Holding the money only pays if the policies do not lose too much: when claims cost more than customers paid, the insurer is paying for the money it holds.

   And the whole of it

   Every driver who paid Geico this year has, in effect, lent Berkshire money for as long as the policy runs. What that money earns is set at US central bank meetings that none of those drivers attends.

   The truth

   • What is really going on Berkshire Hathaway earned less from its insurers this summer, because Geico cut prices to win back drivers and lower short-term interest rates cut what the insurers' cash earned. [3][4]
   • Seifert also said Berkshire publishes so little that Geico's problems are hard to pin down. [3]
   • Chris Ballard of Check Capital, which owns Berkshire shares, said he had expected Geico's dip. [2]
   • Who gains Drivers shopping for car insurance — Geico is charging lower premiums to win back customers, so drivers it signs up get cheaper cover. [3]
   • Who pays Shops and other retail firms Berkshire owns — Berkshire says shoppers wary of tariffs and wars have left several of them with "sluggish" demand. [3]
   • Nobody knows yet

     Whether Berkshire is still buying back its shares.

     Reuters says it bought about $2 billion more in October, but AP says the buying probably stopped once the price passed $878,000. [3][2]

   • Nobody knows yet

     How much cash Berkshire really holds.

     Taking off $20.5 billion of bills bought but not yet paid for leaves about $357 billion. [4] CNBC also leaves out the railway's and power firms' own cash, for $352.3 billion. [1]

   What comes next

   Next week Berkshire files the list of shares it bought and sold. [7]

1. 02

   China buys gold for a 24th month

   What happened

   • China's central bank added 25.8 tonnes of gold in October, its 24th month of buying in a row. [9]
   • It kept buying as gold fell almost 7% in October, to below $4,000 an ounce. [9]
   • That was gold's worst October since 2008, during the global financial crisis. [9]
   • The bank has bought about 129 tonnes in the first 10 months of 2026. [9]
   • China's savings in foreign money also rose $4.9 billion, to $3.405 trillion, the bank said. [10]

   Who is involved

   The People's Bank of China published the figures on Saturday. [9]

   How it unfolded

   1. 2008 the global financial crisis
   2. Oct 2026 gold's worst October since

   Why it matters

   Central banks worldwide bought 321 tonnes between July and September, the most since late 2024. [9] That buying has held up gold while others bought less. [9]

   How it works

   Gold pays no interest, so higher interest rates tend to push its price down. [9]

   Dear energy from the Iran war pushed central banks toward higher rates, and that weighed on gold. [9]

   Seen it before

   Money kept in a sock drawer is safe, but it earns nothing while a savings account pays.

2. 03

   Chinese shares in Hong Kong jump 5.2%

   What happened

   • A Hong Kong index of mainland Chinese companies rose 5.2% last week. [11]
   • It was the index's best week since March 2025. [11]
   • AI suppliers such as Samsung, SK Hynix and TSMC left Asia's markets badly exposed to the sell-off. [11]
   • Charlie Hong of LOGOS Asset Management sold SK Hynix, Samsung and Intel shares last month and bought Indian ones. [11]
   • Lotus, a hedge fund, is betting on Hong Kong shares and against oil firms. [11]

   Who is involved

   • Samsung South Korea
   • SK Hynix South Korea
   • TSMC Taiwan

   How it unfolded

   1. Mar 2025 the last week this good
   2. Last week up 5.2%

   Why it matters

   Before these gains, India's and China's main indexes were among the world's worst this year. [11]

   How it works

   Rajeev De Mello of Gama Asset Management expects investors to diversify, putting less of their money on AI. [11]

   BNP Paribas says some funds now hold Chinese shares to balance portfolios heavy in AI. [11]

   Seen it before

   A football team with only strikers has nobody to defend when the other side attacks.

   The truth

   • What is really going on Its shares still rose more than 5% this week, as money left technology shares for firms like it and for Chinese shares in Hong Kong. [8][11]
   • Not everyone has left AI: some investors call the sell-off a chance to buy cheaply. [11]
   • Who gains Indian and Chinese stock markets — Funds that want less riding on AI are buying there, because those markets hold few AI firms. [11]
   • Who pays Asia's AI chip makers — Emmer Capital's chief expects foreigners to keep selling Asia's AI suppliers' shares. [11]
3. 04

   The US price figure due on Tuesday

   What happened

   • The US publishes its October consumer price index on Tuesday. [14] It measures how fast prices rise for goods and services. [13]
   • Economists polled by Bloomberg expect prices rose 0.3% in October, after 0.6% the month before. [13]
   • Producer prices, what makers charge for their goods, follow on Friday. [15]
   • He also wants more information before the bank decides its next move. [12]

   Who is involved

   John Williams, head of the US central bank's New York branch, spoke in Frankfurt on Friday. [12] He said inflation is "absolutely too high". [12]

   How it unfolded

   The bank raised its rate to 3.75%-4% in September, then held it in October. [12]

   1. Tue October consumer prices
   2. Fri producer prices
   3. Tue October prices
   4. 8-9 Dec the rate decision

   Why it matters

   More signs of high inflation would make a rise on 9 December look likely, the Wall Street Journal says. [15]

   Results from CoreWeave, Applied Materials and Cisco next week will also test how much firms spend on AI. [14]

   The truth

   • Mint puts traders' odds of a December rise at about 80%, citing LSEG data. [14] The Wall Street Journal, citing LSEG too, says 75%. [15]
   • Nobody knows yet

     Whether the US central bank raises its rate on 9 December.

     John Williams said the bank needs more information first, and Tuesday's price figure is the next piece of it. [12][14]

   What comes next

   The bank's rate-setters meet on 8 and 9 December. [14]

4. 05

   Poorer economies' central banks turn to rate rises

   What happened

   • Citi, a big US bank, says central banks in emerging, middle-income economies are turning toward higher interest rates. [16]
   • Citi says rising prices and costly energy are pushing them. [16]
   • Thailand's inflation jumped to 3.9% in October, from 2.82% in September. [17]
   • That took it above the range Thailand's central bank aims for, as fuel prices rose with the Middle East conflict. [17]
   • Colombia's central bank held its rate at 12.25% and set out a $2 billion currency operation. [16]

   Who is involved

   Citi's report covers Poland, the Czech Republic, Colombia and Chile, all emerging economies. [16]

   • Poland Central Europe
   • Czech Republic Central Europe
   • Colombia Latin America
   • Chile Latin America

   Why it matters

   Citi expects bond returns to differ more between these countries next year as their central banks act differently. [16]

   How it works

   Citi warns of "second-round" effects, which central banks must avoid "at all costs". [16]

   Hank Calenti of SMBC, a Japanese bank, says dear food makes workers ask for higher pay. [18] He calls that a second-round effect. [18]

   Seen it before

   A canteen raises lunch prices, its cooks ask for a raise, and lunch goes up again.

   The truth

   • Who pays Households in Thailand — Fuel prices driven up by the Middle East conflict raised their cost of living. [17]
5. 06

   China's planners say shoppers hold back

   What happened

   • China's top economic planning agency named weak spending at home as a major challenge. [19]
   • Retail sales rose just 1.1% in the first nine months of 2026. [19]
   • Zheng pointed to a gap between how much China can make and how much it buys. [19]
   • The agency said it will push private investment and speed up big building projects. [19]
   • New-home prices in China's smaller cities fell 2% in October from a year earlier. [20] Used homes there fell 6.5%. [20]

   Who is involved

   The agency is the National Development and Reform Commission, which draws up China's economic plans. [19]

   Its director, Zheng Shanjie, met bosses of private companies on Friday. [19]

   • Zheng Shanjie head of the planning agency
   • Private bosses asked for help

   How it unfolded

   That came despite steps to lift the market that began in late August. [20]

   1. Late Aug help for buyers begins
   2. Oct prices still falling

   Why it matters

   SCMP says the slump could push China's regulators to offer buyers stronger help. [20]

   The truth

   • Who pays China's private companies — Their bosses told the planners they face "excessive competition" and need easier loans and help with energy. [19]
   • Nobody knows yet

     How much help China will give its buyers in 2027.

     The planning agency's statement named no new stimulus and no amount. [19]

6. 07

   A Chinese economist loses new followers

   What happened

   • Ren Zeping, a well-known Chinese economist, can no longer gain new followers on WeChat, the Chinese messaging app. [21]
   • Since 24 October, his account cannot be found by search, and his video account is blocked too. [21]
   • A message says the account is blocked from new followers "over rule violations". [21]
   • Support staff told SCMP the exact cause was "unknown" to them. [21]

   Who is involved

   He is famous for correctly calling a boom in shares on mainland China's stock markets. [21]

   How it unfolded

   1. 24 Oct account hidden from search
   2. Now still blocked

   Why it matters

   The block comes during a bear market, a long slide in prices, on China's stock markets. [21]

   The truth

   • Industry insiders told SCMP the block was not unexpected. [21]
7. 08

   India caps big bets on the rupee

   What happened

   • Sebi, India's market regulator, cut how big a bet on the rupee traders can hold without showing a real need. [22]
   • The new limit is $5 million across all of India's stock exchanges. [22]
   • Sebi changed its own rules last week to match. [22]
   • Foreign funds that want bigger bets must show they own Indian shares or bonds. [22]

   How it unfolded

   India's central bank cut the same limit from $100 million to $5 million on 10 October. [22]

   1. 10 Oct the central bank cuts the limit
   2. Last week Sebi matches it

   Why it matters

   The rupee has lost nearly 5% against the dollar this year. [22] India buys much of its oil abroad, so dearer oil means it needs more dollars. [22]

   How it works

   Regulators separate hedging, protection for a firm with real foreign bills, from speculation, a bet for profit. [22]

   Above $5 million a trader must show real business in India, leaving less room for big bets. [22]

   Seen it before

   A library lets anyone borrow one book, but more only with a teacher's note.

   The truth

   • Who gains Indian firms with real foreign bills to pay — They may still hedge if they show the trade behind it, and three state oil firms got their own window to buy dollars. [22]
   • Who pays Traders who switch their rupee bets — They can no longer cancel a rupee contract and book it again to change their position. [22]
   • Nobody knows yet

     Whether India's new limits will steady the rupee.

     Mint says only that the rules could calm speculative demand for dollars, and gives no measure of how much. [22]

8. 09

   Coca-Cola's Indian bottler files to list

   What happened

   • Hindustan Coca-Cola Holdings, which owns Coca-Cola's biggest bottler in India, filed draft papers to list its shares. [23]
   • The owner plans to cut its stake from 60% to about 45%. [23]
   • The business's sales rose 20.46% in April to June from a year earlier. [23]
   • It sells 41 drinks, including Coca-Cola, Thums Up, Sprite and Maaza, through 1.7 million shops. [23]

   Who is involved

   Every share on offer will be sold by its majority owner, Hindustan Coca-Cola Overseas Holdings. [23]

   Jubilant Beverages owns the other 40% and is not selling any. [23]

   • Hindustan Coca-Cola Overseas Holdings the seller

   How it unfolded

   Coca-Cola said in June it was looking at listing the business in 2027. [23]

   1. June Coca-Cola weighs a 2027 listing
   2. Now draft papers filed

   Why it matters

   Mint says more global firms are using India's stock market to cash in, not to raise new money. [23]

   How it works

   This is an offer for sale: the owners sell shares they already hold, and the company raises no new money. [23]

   Seen it before

   A player who sells their seat in a band gets paid, but the band gets nothing.

   The truth

   • Who gains Hindustan Coca-Cola Overseas Holdings — It is selling every share on offer, so all the money the sale raises goes to it, not to the bottling company. [23]
   • Nobody knows yet

     What price Coca-Cola's Indian bottler will sell its shares at.

     The draft papers give no price range and no size for the sale. [23]

9. 10

   National Trust members vote to change bank

   What happened

   • Members of the National Trust voted 53,256 to 4,094 on Saturday to look for a new bank. [24]
   • Its bank is Barclays, which members criticise for its lending to oil and gas firms. [24]
   • A new bank must show that it protects nature and helps cut climate damage. [24]
   • The board says big high-street banks must still be allowed to bid. [24] It says no ethical bank is big enough for the Trust. [24]

   Who is involved

   The National Trust is a British charity that looks after historic buildings, countryside and coastline. [24]

   • Barclays the Trust's bank
   • Members object to its oil and gas lending

   Why it matters

   Campaigners say charities should judge their bank by the standards they set for their suppliers. [24]

   The truth

   • Barclays says it arranged over $300 billion of green and transition money in three years. [24] Campaigners say fossil fuel firms can use it, if not directly for oil and gas. [24]
   • Nobody knows yet

     Whether the National Trust will really change banks.

     The vote does not bind the trustees, and insiders say the search will not start for at least a year. [24]

10. 11

    China backs $16 billion of African mineral plants

    What happened

    • Chinese firms back 19 African projects worth $16.3 billion that refine minerals or make goods from them. [25]
    • It tracked $41.2 billion of Chinese money in 32 mining projects in 15 African countries, up to June 2026. [25]
    • DR Congo, Guinea and Zimbabwe limit exports of raw minerals to push processing at home. [25]
    • Guinea's Simandou iron ore project, worth $23 billion, is described as the world's largest of its kind. [25]

    Who is involved

    The figures come from a report by Development Reimagined, a consultancy in Beijing. [25]

    • DR Congo limits raw exports
    • Guinea limits raw exports
    • Zimbabwe limits raw exports

    How it unfolded

    In December 2025 the US won its firms priority access to some mines in DR Congo. [25]

    1. Dec 2025 US firms win priority in DR Congo
    2. Now China expands processing

    Why it matters

    The two powers want the same metals, which go into clean energy, weapons and factories. [25]

    How it works

    Refining at home, called value addition, can let a country keep more of what its minerals earn. [25]

    Seen it before

    Lemonade sells for more than the lemons it is made from.

    The truth

    • The report says processing is still a small share, partly because the biggest deals have few firm promises to process. [25]
    • Who gains African countries that limit raw-mineral exports — Chinese money for refining plants inside their borders could help them keep more of what their minerals earn. [25]
11. 12

    One-person firms grow where AI can help

    What happened

    • Applications to start firms with no sign of hiring rose 26.8% in industries highly exposed to AI. [26]
    • They rose from about 222,000 a quarter in early 2024 to about 281,000 in early 2026. [26]
    • In the same industries, applications for firms likely to hire fell 6.4%. [26]
    • Alex Willen runs 12 online brands with no staff and expects $2.5 million to $3 million in sales this year. [26]

    Who is involved

    The figures come from Liya Palagashvili, a labour economist at George Mason University's Mercatus Center. [26]

    How it unfolded

    1. Early 2024 about 222,000 a quarter
    2. Early 2026 about 281,000 a quarter

    Why it matters

    Stanford economist Erik Brynjolfsson says medium-sized firms may lose out as AI favours the very small and the very big. [26]

    How it works

    Brynjolfsson says AI now does tasks that used to need a whole team. [26]

    Seen it before

    A YouTuber with one camera and an editing app does what once took a TV crew.

    The truth

    • Nobody knows yet

      Whether AI is really behind the rise in one-person firms.

      Palagashvili says her findings are early and only describe the rise; they do not show that AI caused it. [26]

    Good news

    • Kristin Ginn left Microsoft in March and has about $250,000 of work booked, with no staff. [26]