Buffett’s Berkshire Hathaway Boosts Operating Profit, Cash Hoard Sets Record

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Berkshire Hathaway shareholders locomotion  by a video surface  astatine  the company's yearly  gathering  successful  Omaha connected  May 4, 2013. (Rick Wilking/Reuters)

Berkshire Hathaway shareholders locomotion by a video surface astatine the company's yearly gathering successful Omaha connected May 4, 2013. (Rick Wilking/Reuters)

Warren Buffett’s Berkshire Hathaway Inc. connected Saturday reported improved operating results arsenic it extended its rebound from the aboriginal stages of the pandemic, adjacent arsenic it chopped backmost immoderate banal holdings and boosted its cash hoard to a record.

Berkshire besides said it repurchased $7.6 cardinal of its ain banal successful the 3rd quarter, reflecting its request to enactment currency to enactment arsenic stock prices regularly acceptable caller highs and purchases of full companies appeared excessively expensive.

The repurchases and different banal marketplace enactment suggest Buffett sees greater worth successful his ain institution than successful others.

Indeed, Berkshire ended September with $149.2 cardinal of currency and equivalents, and sold astir $2 cardinal much banal than it bought successful the quarter.

Third-quarter operating profit roseate 18 percent to $6.47 billion, oregon astir $4,331 per Class A share, from $5.48 cardinal successful the year-earlier period.

Net income declined 66 percent to $10.3 billion, oregon $6,882 per Class A share, from $30.1 billion, reflecting little unrealized gains connected Berkshire’s communal banal holdings including Apple Inc. and Bank of America Corp.

The stock repurchases boosted full buybacks to $20.2 cardinal this year, and adjacent to $45 cardinal since the extremity of 2019. Berkshire’s stock number declined further successful October, suggesting it repurchased different $1.7 cardinal of its ain stock.

Buffett’s inactivity successful purchasing stocks and full companies has disappointed immoderate investors and analysts.

It stems successful portion from the banal marketplace rally and the relation of peculiar intent acquisition companies (SPACs), which instrumentality backstage companies public, successful driving up prices of acquisition targets.

“It’s a killer,” Buffett said astatine Berkshire’s yearly gathering connected May 1, referring to SPACs.

Reuters

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