Berkshire reports operating earnings jump, buys back another $1 billion in stock
Sorry, I’m struggling to use this new format. This article is on cnbc, someone else will share it.
From Barrons,
“Operating profit rose 20% in the third quarter, to $7.8 billion after taxes, topping expectations. The gain was helped by increased investment income as the company benefited from the impact of higher short-term interest rates.
Berkshire generated the outsize profit gain despite suffering $3.4 billion of losses before taxes — and $2.7 billion after taxes — from Hurricane Ian.”
And this take from Yahoo,
"Berkshire Hathaway posted a third-quarter loss, as the conglomerate run by billionaire Warren Buffett said it lost money on its stock investments and from insurance underwriting.
The net loss of $2.69 billion, or $1,832 per Class A share, compared with a profit of $10.34 billion, or $6,882 per share, a year earlier. Operating profit rose 20% to $7.76 billion."
Thank you, obviously , you, are a stablegenius, and I’m a, .
Wow, the earnings power of Berkshire is chugging along despite the slowdown at BNSF. A 20% gain YOY?!?
This is really quite remarkable. 20% year-over-year gain WITH the 2.7 billion after tax loss on hurricane Ian??!!! Operating earnings keep producing. And the higher interest rates are going to be a nice tail wind for Berkshire going forward.
Bought back even more shares in Q4 as of Oct 26.
Bought 2132 Equivalent A’s - 3,199,092 Equivalent B’s for +/- $616 MM…
Please check my math
Of the 20% gain, only 9% is BNSF, utilities and MSR ($534m)
There’s a $679M gain from “Other**”
“Includes foreign currency exchange gains related to non-U.S. Dollar denominated debt in 2022 of approximately $858 million in the third quarter and approximately $2.4 billion in the first nine months and in 2021 includes foreign currency exchange gains of approximately $196 million in the third quarter and approximately $676 million in the
first nine months.”
2021 saw big insurances losses, also.
BRK is stuck in low growth, low margin businesses.
You should not expect high growth from them especially given the large size.
Recent BRK outperformance has come from good old fashioned stock picking. Hitting the ball put of the park with Apple and Oil.