Berkshire Hathaway posts a 40% jump in operating earnings, cash pile swells to a record 7 billion

An Andy Warhol-like print of Berkshire Hathaway CEO Warren Buffett hangs exterior a clothes stand throughout the first in-person annual assembly since 2019 of Berkshire Hathaway Inc in Omaha, Nebraska, U.S. April 30, 2022.

Scott Morgan | Reuters

Berkshire Hathaway on Saturday reported a huge jump in third-quarter operating earnings, whereas sitting on a record quantity of cash as Warren Buffett noticed few dealmaking alternatives.

The Omaha-based conglomerate’s operating earnings — which embody earnings made out of the myriad of wholly owned companies corresponding to insurance coverage, railroads and utilities — totaled $10.761 billion final quarter. That’s 40.6% greater than the $7.651 billion earned from the identical quarter a yr in the past.

Berkshire held a record degree of cash on the finish of September — $157.2 billion — topping the $149.2 billion excessive set in the third quarter of 2021.

The “Oracle of Omaha” has been profiting from surging bond yields, shopping for up short-term Treasury payments yielding at the very least 5%. The conglomerate owned $126.4 billion value of such investments on the finish of the third quarter, in contrast to about $93 billion on the finish of final yr.

Buyback exercise continued to decelerate as Berkshire shares roared to a record excessive throughout the quarter. The agency spent $1.1 billion to repurchase shares, bringing the nine-month whole to roughly $7 billion.

Berkshire Class A shares have rallied practically 14% this yr. After reaching an all-time excessive on Sept. 19, shares have fallen about 6% from the height.

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Berkshire Hathaway Class A shares

Buffett’s firm did submit a vital funding lack of $24.1 billion in the third quarter, which largely got here from a decline in its huge Apple stake. Shares of the iPhone maker fell 11.7% throughout the quarter however have rebounded over 3% since.

As per common, the “Oracle of Omaha” requested traders to look previous the quarterly fluctuations in Berkshire’s fairness portfolio.

“The quantity of funding good points/losses in any given quarter is often meaningless and delivers figures for internet earnings (losses) per share that may be extraordinarily deceptive to traders who’ve little or no data of accounting guidelines,” Buffett mentioned in a assertion.

This is breaking information. Please examine again for updates.

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