Get 40% Off
🚨 Markets Are Down. Unlock Undervalued StocksFind Stocks Now

Berkshire Hathaway Q3 earnings surge, cash reserve hits record high

EditorHari G
Published 11/08/2023, 05:54 AM
Updated 11/08/2023, 05:54 AM
© Reuters.

Warren Buffett's Berkshire Hathaway (NYSE:BRKa) reported a significant rise in Q3 operating earnings, which soared by 40.6% to $10.761 billion. The company's cash reserve also hit a historical peak, reaching $157.2 billion. These results reflect the firm's strategic approach to capitalizing on rising bond yields by investing in short-term Treasury bills, which pushed Berkshire's holdings to $126.4 billion.

Despite these positive developments, the company's share buyback program witnessed a slowdown, with only $1.1 billion spent in Q3. This coincided with a 6% drop in its Class A shares from their September peak, even though they have increased by 14% this year.

In terms of portfolio performance, Geico, a significant part of Berkshire's insurance portfolio, reported underwriting profits of $1.1 billion. Conversely, BNSF Railway experienced a 15% profit drop due to decreased freight volumes and higher costs.

Berkshire also suffered an investment loss of $24.1 billion in Q3, largely attributable to a decrease in Apple (NASDAQ:AAPL)'s stock value.

Berkshire Hathaway has consistently surpassed the S&P 500's performance and reached a market cap of $762 billion since its inception in 1965. This growth is attributed to organic expansion and strategic acquisitions like Pilot Travel Centers in 2023 that have substantially boosted revenues.

While fluctuating investment and derivative gains have led to inconsistent profits and cash flows over the years, the company's resilience and high-quality operations have navigated these complexities effectively. Despite trading at higher multiples than in previous years, Berkshire Hathaway's consistent performance and ability to handle challenges have heightened its appeal to long-term investors.

3rd party Ad. Not an offer or recommendation by See disclosure here or remove ads .

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.