Berkshire Hathaway’s operating earnings jump 20%, conglomerate buys back another $1 billion in stock
PUBLISHED SAT, NOV 5 20228:28 AM EDTUPDATED SAT, NOV 5 20228:50 AM EDT
SHAREShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email
- Berkshire’s operating earnings totaled $7.761 billion in the third quarter, up 20% from year-earlier period.
- The conglomerate spent $1.05 billion in share repurchases, bringing the nine-month total to $5.25 billion.
- The Omaha-based company suffered a $10.1 billion loss on its investments during the third quarter’s market turmoil, however.
In this article
Follow your favorite stocksCREATE FREE ACCOUNT
Berkshire Hathaway Chairman and CEO Warren Buffett.
Andrew Harnik | AP
Berkshire Hathaway on Saturday posted a solid gain in operating profits during the third quarter despite rising recession fears, while Warren Buffett kept buying back his stock at a modest pace.
The Omaha-based conglomerate’s operating earnings — which encompass profits made from the myriad of businesses owned by the conglomerate like insurance, railroads and utilities — totaled $7.761 billion in the third quarter, up 20% from year-earlier period.
Insurance-investment income came in at $1.408 billion, up from $1.161 billion a year earlier. Earnings from the company’s utilities and energy businesses came in at $1.585 billion, up from $1.496 billion year over year. Insurance underwriting suffered a loss of 962 million, however, while railroad earnings dipped to $1.442 billion from $1.538 billion in 2021.
Berkshire spent $1.05 billion in share repurchases during the quarter, bringing the nine-month total to $5.25 billion. The pace of buyback was in line with the $1 billion purchased in the second quarter. Repurchases were well below CFRA’s expectation as its analyst estimated it would be similar to the $3.2 billion total in the first quarter.
However, Berkshire did post a net loss of $2.69 billion in the third quarter, versus a $10.34 billion gain a year before. The quarterly loss was largely due to a drop in Berkshire’s equity investments amid the market’s rollercoaster ride.
Berkshire suffered a $10.1 billion loss on its investments during the quarter, bringing its 2022 decline to $63.9 billion. The legendary investor told investors again that the amount of investment losses in any given quarter is “usually meaningless.”
Shares of Buffett’s conglomerate have been outperforming the broader market this year, with Class A shares dipping about 4% versus the S&P 500′s 20% decline. The stock dipped 0.6% in the third quarter.
Buffett continued to buy the dip in Occidental Petroleum in the third quarter, as Berkshire’s stake in the oil giant has reached 20.8%. In August, Berkshire received regulatory approval to purchase up to 50%, spurring speculation that it may eventually buy all of Houston-based Occidental.
The conglomerate amassed a cash pile of nearly $109 billion at the end of September, compared to a total of $105.4 billion at the end of June.
- Powerball’s jackpot is $1.6 billion, the largest lottery prize ever. Here’s the tax bill
- I talked to 70 parents who raised highly successful adults—here’s the ‘rare’ skill they taught their kids
- In bankrupt Lebanon, locals mine bitcoin and buy groceries with tether, as $1 is now worth 15 cents
- Warren Buffett’s equity portfolio is concentrated in just 5 stocks. Here’s what they are
- Supreme Court again declines to block Biden’s student loan relief plan
FROM THE WEB
- Subscribe to CNBC PRO
- Licensing & Reprints
- CNBC Councils
- Supply Chain Values
- CNBC on Peacock
- Join the CNBC Panel
- Digital Products
- News Releases
- Closed Captioning
- About CNBC
- Site Map
- Ad Choices
Advertise With Us
Get this delivered to your inbox, and more info about our products and services.
© 2022 CNBC LLC. All Rights Reserved. A Division of NBCUniversal
Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.