May 23, 2024

Brighton Journal

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Berkshire Hathaway earnings for the third quarter BRK

Berkshire Hathaway earnings for the third quarter BRK

Berkshire Hathaway Chairman and CEO Warren Buffett.

Andrew Harnick | AP

Berkshire Hathaway Saturday posted solid gains in operating profit during the third quarter despite mounting recession fears, while Warren Buffett continued to buy back his shares at a modest pace.

The Omaha-based group’s total operating profit — which includes profits from countless conglomerate-owned businesses such as insurance, railroads and utilities — totaled $7.761 billion in the third quarter, up 20% from the same period last year.

Investment and insurance income was $1.408 billion, up from $1.161 billion a year earlier. Profits from the company’s utility and energy business came in at $1.585 billion, up from $1.496 billion year-over-year. Insurance underwriting suffered a loss of $962 million, while railroad profits fell to $1.442 billion from $1.538 billion in 2021.

Berkshire spent $1.05 billion in share buybacks during the quarter, bringing the nine-month total to $5.25 billion. The repurchase rate was in line with the $1 billion purchased in the second quarter. The buybacks were well below the CFRA’s expectations as its analyst estimated they would be similar to a total of $3.2 billion in the first quarter.

However, Berkshire reported a net loss of $2.69 billion in the third quarter, compared to $10.34 billion a year earlier. The quarterly loss is largely due to a decline in Berkshire’s stock investment amid a rolling market trip.

Berkshire suffered a loss of $10.1 billion in its investments during the quarter, bringing its decline in 2022 to $63.9 billion. The legendary investor once again told investors that the scale of investment losses in any quarter is “usually meaningless.”

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Buffett conglomerate shares have outperformed the broader market this year, with Class A shares down about 4% versus Standard & Poor’s 50020% dip. The stock fell 0.6% in the third quarter.

Buffett kept buying the dip Occidental Petroleum In the third quarter, Berkshire’s stake in the oil giant was 20.8%. in August, Berkshire has received regulatory approval to buy up to 50%, fueling speculation that it might eventually buy all of the Houston-based Occidental.

The giant conglomerate raised a cash pile of about $109 billion at the end of September, compared to a total of $105.4 billion at the end of June.