(This is the Warren Buffett Watch newsletter with news and analysis about Warren Buffett and Berkshire Hathaway. You can sign up here to receive it in your inbox every Friday evening.)
Berkshire shares rise as AI concerns weigh on Wall Street
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The rally in Berkshire shares has narrowed their underperformance relative to the benchmark S&P 500 from 12.2 percentage points on October 29th to 4.3 percentage points.
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Berkshire's wholly-owned operating profits rose 34% to nearly $13.5 billion in the third quarter, with insurance revenue rising 200%.
There were again no share buybacks, a sign that Buffett doesn't believe Berkshire shares are significantly undervalued despite their weakness since May.
With no money spent buying back Berkshire shares and stock sales outpacing purchases, the company's cash and cash equivalents stood at $381.7 billion as of Sept. 30, up 10.9% since the end of June.
Subtracting BNSF's cash and accounting for the timing of some Treasury purchases, the total is $354.3 billion, up 4.3% from June.
Buffett's farewell message?
Warren Buffett could deliver his final message as CEO of Berkshire next Monday.
This week, in a press release, the company confirmed what it told the Wall Street Journal last week.
“On Monday, November 10, Berkshire will issue a press release that will include a message from Mr. Buffett on philanthropy, Berkshire and other topics that may be of interest to Berkshire shareholders and others.”
Warren Buffett takes the floor before Berkshire Hathaway's annual shareholder meeting on May 3, 2024 in Omaha, Nebraska.
David A. Grogen | CNBC
The philanthropic part will likely be tied to his annual Thanksgiving donations to family foundations.
The “Berkshire and other matters” portion could be something of a farewell message as he prepares to step down as CEO at the end of the year.
Although he remains chairman, he will not be on stage at the next May meeting and new CEO Greg Abel will write the annual letter to shareholders.
As he appears to be intentionally limiting his future ability to speak to shareholders and the rest of the world, Buffett may now be ready to have his final say.
10-Q notes point to more sales from Apple and Bank of America
We won't know for sure until next Friday, when Berkshire's third-quarter stock portfolio overview is released, but it looks like there was more selling Apple Shares during the three months ended September 30th.
CNBC.com's Yun Li notes that Berkshire's 10-Q last Saturday reported a $1.2 billion decline in the cost basis of consumer staples stocks, which include Apple.
She also points out that Apple's 24% gain during the quarter would have provided an opportunity for Buffett to make further gains.
Apple remains Berkshire's largest holding, with a current value of $75.2 billion, but has reduced that stake by 69% over the past two years.
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Barron's divides the $1.2 billion drop in costs by $35, Apple's per-share basis, and estimates that Berkshire may have sold 35 million shares for about $8 billion, based on Apple's average price of $230 per share in the quarter.
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Since Apple reported in its 10-Q report that it had $12.4 billion in stock sales in the third quarter, Barron's suspects that could account for much of the remaining $4.4 billion Bank of America Sales, another large position that Berkshire has sharply reduced.
This share has been reduced by around 40% since the beginning of last year.
At $32.2 billion, it is Berkshire's third-largest holding.
Taking in more yen is expected to lead to more buying in Japan
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All five stocks are at or near all-time highs.
The total value of Berkshire's reported holdings is approaching $33 billion, up from $31 billion a month ago.
Assuming some of Berkshire's continued purchases have not yet been publicly disclosed, the number could be even higher.
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“That’s not me.”
Berkshire Hathaway has a new warning about YouTube videos containing “images or AI-created images that imitate Warren Buffett.”
A press release on Thursday said: “In general, such video images of Mr. Buffett appear to look like him, but the sound of the impersonator speaking in a very flat, monotone voice is clearly not Mr. Buffett's voice.”
It added: “Mr. Buffett is concerned that these types of fraudulent videos are becoming a spreading virus. Individuals who are less familiar with Mr. Buffett may believe that these videos are genuine and may be misled by the content of these videos.”
In April, in a press release, Berkshire cited unspecified “reports currently circulating on social media” about “comments allegedly made” by Buffett and said, “All of these reports are false.”
Buffett also warned shareholders at Berkshire's 2024 annual meeting that AI's ability to create fake audio and video files could make fraud the “highest growth industry of all time.”
BUFFET ON THE INTERNET
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HIGHLIGHTS FROM THE ARCHIVE
When investing, you can't be afraid when others are afraid (2010)
Warren Buffett explains why investors should look at their stocks the same way they would look at owning a farm or a home.
WARREN BUFFETT: If you have the temperament that you become afraid when others are afraid, you are unlikely to make much money in securities over time.
You know, people really – if they haven't looked at quotes – but of course the whole world is pushing them to look at quotes and, beyond that, do something based on small changes in quotes.
But think about how much more rational – we've talked about this before – but think about how much more rational it is to invest in a farm than the way many people buy stocks.
If you buy a farm, will you get an offer next week, will you get an offer next month? If you're buying an apartment building, will you get an offer next week or next month?
No, you look at the home or the farm and say, “I expect it to produce this many bushels of soybeans and corn, and if it does, it will meet my expectations.”
If they buy a stock and think if it goes up, it's great, and if it goes down, it's bad.
We think exactly the opposite. When it goes down, we are happy about it because we buy more. And when it goes up, it kills us to buy more.
And I – you know – all sorts of – you know, Ben Graham wrote about it. It was explained. But if you can't get yourself into that mental mindset, you'll always be afraid when everyone else is afraid.
And expecting someone else to tell you when to buy and get your courage back or something like that, you know –
I could significantly encourage this guy by saying this is a great time to buy, and then in a week he would meet someone else who would tell him the world was ending and he would sell.
I mean, he's a realtor's friend, but he's not going to make much money.
BERKSHIRE STOCK CLOCK
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BERKSHIRE'S BEST STOCK HOLDINGS – November 7, 2025
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Berkshire's largest holdings of publicly traded stocks in the US, Japan and Hong Kong by market value based on today's closing prices.
Holdings are as of June 30, 2025, as reflected in Berkshire Hathaway's 13F filing dated August 14, 2025, except for:
For the full list of holdings and current market values, visit CNBC.com's Berkshire Hathaway Portfolio Tracker.
QUESTIONS OR COMMENTS
Please send me questions or comments about the newsletter to alex.crippen@nbcuni.com. (We're sorry, but we don't forward questions or comments to Buffett himself.)
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Buffett's annual letters to shareholders are also highly recommended reading. They are collected here on Berkshire's website.
– Alex Crippen, Editor, Warren Buffett Watch