Warren Buffett’s Berkshire Hathaway reported a sharp rebound in operating profit over the weekend, but Wall Street analysts were divided on the outlook for the conglomerate between optimism over its insurance rebound and succession uncertainty. The Omaha-based company said operating earnings from its collection of businesses, including insurance, railroads and energy, rose 34% from a year earlier to $13.49 billion in the third quarter . The surge was powered by a more than 200% jump in insurance underwriting income to $2.37 billion, reflecting lower catastrophe losses and improved results at auto insurer Geico. Class A shares of Berkshire were flat on Monday despite the strong results. Berkshire shares have fallen more than 10% from their high in early May, right before Buffett announced he’s stepping down as CEO at the end of the year, ending six legendary decades of control. BRK.A YTD mountain Berkshire class A shares year to date The profit rebound came as Berkshire’s cash pile swelled to $381.6 billion, surpassing the previous record set earlier this year. Buffett also refrained from repurchasing shares for a ninth straight month. This decision to stay on the sidelines reinforced the impression that the stock may be full valued, even as it significantly lags the S & P 500 this year. KBW said Berkshire’s shares look “vulnerable” post earnings, citing a rich valuation and emerging lea …
