Berkshire Hathaway reported its third quarter earnings on Saturday. The Oracle of Omaha has delivered and investors are pleased with the results. Warren Buffet led Berkshire Hathaway has reported a huge increase in its operating earnings in this quarter, and it is also holding a record level of cash, higher than its third quarter level in 2021.
Berkshire Hathaway reported operating earnings of $10.761 billion in the recent quarter. This is 40.6 percent higher than its earnings in the same quarter in 2022, which was $7.651 billion. The Omaha-based conglomerate also reported $157.2 billion in cash. This is higher than the $149.2 billion that the company had in the third quarter of 2021. The company sold over $5 billion of stocks but does not seem to have found many new stocks that appeal.
Berkshire Hathaway bought short-term Treasury bills whose yield was 5 percent or more. It had $126.4 billion worth of these at the end of the third quarter, while it had about $93 billions of such investments at the end of 2022.
Berkshire Hathaway shares were at a record high in the quarter so the conglomerate slowed down repurchase of its shares and used $1.1 billion to buy back its shares. The company has repurchased shares worth roughly $7 billion in the first nine months of the year.
Berkshire Hathaway Class A shares have seen a 14 percent rally in 2023, reaching a peak on September 19 and then falling by 6 percent from the all-time high share price.
Berkshire’s insurance portfolio’s best asset Geico once again reported a profit with $1.1 billion underwriting earnings. The auto insurer, which is Warren Buffet’s favorite child, is seeing a turnaround after competitor Progressive gained market share.
The conglomerate’s railroad division BNSF saw a 15 percent fall in earnings and it also saw investment losses due to $23.5 billion partly due to its Apple stake. The Cupertino giant’s shares fell by 11.7 percent but also regained more than 3 percent since September 30.
Berkshire released a statement where it is said economic effects from Covid, geopolitical conflicts, supply chain issues and government action to slow inflation impacted their operating businesses and their long-term effects could not be “reasonably estimated” at this point in time.
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CWEB News Summarized Breaking, Business and Financial Newsletter for November 6, 2023
