US Markets
Monday, November 6th, 2023 12:48 am EDT
Key Points
- Strong Third-Quarter Operating Earnings: Berkshire Hathaway reported a significant increase in its third-quarter operating earnings, reaching $10.761 billion, which was a 40.6% rise from the same quarter the previous year.
- Record Cash Holdings: The company held a record level of cash at the end of September, with $157.2 billion, surpassing the previous high of $149.2 billion in the third quarter of 2021. This reflects Warren Buffett’s cautious approach due to limited dealmaking opportunities.
- Investment Loss and Portfolio Fluctuations: Berkshire Hathaway experienced a significant investment loss of $24.1 billion in the third quarter, primarily due to a decline in its Apple stake. The company advised investors to look past the quarterly fluctuations in its equity portfolio, as these figures can be misleading and not necessarily indicative of long-term performance.
Berkshire Hathaway reported a substantial increase in its third-quarter operating earnings, with a 40.6% rise from the same period last year, reaching $10.761 billion. The company also held a record amount of cash at $157.2 billion, reflecting Warren Buffett’s cautious approach in a market with limited dealmaking opportunities. Berkshire has been investing in short-term Treasury bills with yields of at least 5%. The firm slowed its share buyback activity during the quarter as its stock reached record highs, spending $1.1 billion and totaling approximately $7 billion for the first nine months of the year. Despite a significant investment loss of $24.1 billion, mainly due to a decline in its Apple stake, Berkshire advised investors to consider its equity portfolio fluctuations as less meaningful. Geico, part of Berkshire’s insurance portfolio, reported another profitable quarter, while BNSF, the railroad division, faced a 15% decline in earnings due to lower volumes and higher costs. Berkshire also acknowledged the impact of the pandemic, geopolitical risks, and inflation pressures on its operating businesses, but it stated that the long-term effects of these events couldn’t be reasonably estimated at this time.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/04/berkshire-hathaway-brk-earnings-q3-2023.html
