Berkshire Hathaway operating profit almost doubled in 3rd quarter

Lloyd Doyle
November 6, 2018

Burlington Northern Santa Fe railroad added $1.4 billion to Berkshire's quarterly profits, up from $1 billion a year ago.

The firm also repurchased just under $1bn of stock, suggesting Buffet sees a shortage of appealing investment options. Insurance underwriting this year was $441 million, compared to $1.439 last year, due largely to a series of devastating hurricanes.

Berkshire Hathaway Inc.'s insurers dodged the worst of losses caused by Hurricane Florence as the businesses kept up their rebound from a rough 2017. "As part of new accounting standards Berkshire adopted in the beginning of the year, the company said that, ".it reports unrealized gains and losses arising from the changes in the fair values of our equity securities during the period as a component of investment gains in the Consolidated Statements of Earnings." . The company has a market cap of $505.79 billion, a PE ratio of 35.08 and a beta of 0.89.

Berkshire also reported it made $928 million in share repurchases in the past quarter.

Berkshire ended September with $103.6 billion in cash, short-term Treasuries and other similar investments.

"Overall, it's a very strong report", said Andy Kilpatrick, a retired stockbroker and author who wrote "Of Permanent Value: The Story of Warren Buffett".

Their day-to-day operations are overseen by Greg Abel and Ajit Jain, each seen by investors as a possible successor to Buffett, 88, as chief executive.


Berkshire's profits improved across each of its major business units. Earnings rose in all of Berkshire's reporting segments.

Last year, Berkshire reported net earnings of $44.9 billion.

Berkshire warned that insurance losses due to Hurricane Michael are now estimated in the $350 million to $550 million range for the fourth quarter. And the company's book value per Class A share was $228,712 on September 30, higher than $217,677 one quarter ago.

Berkshire Hathaway Inc.'s chairman Warren Buffett. Berkshire's stake in Apple was worth $57.6 billion at the end of the most recent quarter, up from $47.2 billion at the end of June.

Smead said it makes sense for Buffett to buy back stock.

Shares of NYSE BRK.B traded up $1.13 during midday trading on Friday, hitting $209.83.

"It reconfirms what we've known for a long time, which is that the stock has been under-priced".

Other reports by Iphone Fresh

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