Berkshire Hathaway Q3 earnings BRK

Berkshire Hathaway on Saturday posted a stable acquire in working earnings in the course of the third quarter regardless of rising recession fears, whereas Warren Buffett stored shopping for again his inventory at a modest tempo.

The Omaha-based conglomerate’s working earnings — which embody earnings created from the myriad of companies owned by the conglomerate like insurance coverage, railroads and utilities — totaled $7.761 billion within the third quarter, up 20% from year-earlier interval.

Insurance coverage-investment earnings got here in at $1.408 billion, up from $1.161 billion a yr earlier. Earnings from the corporate’s utilities and power companies got here in at $1.585 billion, up from $1.496 billion yr over yr. Insurance coverage underwriting suffered a lack of 962 million, nonetheless, whereas railroad earnings dipped to $1.442 billion from $1.538 billion in 2021.

Berkshire spent $1.05 billion in share repurchases in the course of the quarter, bringing the nine-month whole to $5.25 billion. The tempo of buyback was in step with the $1 billion bought within the second quarter. Repurchases have been nicely beneath CFRA’s expectation as its analyst estimated it might be just like the $3.2 billion whole within the first quarter.

Nonetheless, Berkshire did publish a internet lack of $2.69 billion within the third quarter, versus a $10.34 billion acquire a yr earlier than. The quarterly loss was largely because of a drop in Berkshire’s fairness investments amid the market’s rollercoaster trip.

Berkshire suffered a $10.1 billion loss on its investments in the course of the quarter, bringing its 2022 decline to $63.9 billion. The legendary investor advised traders once more that the quantity of funding losses in any given quarter is “often meaningless.”

Shares of Buffett’s conglomerate have been outperforming the broader market this yr, with Class A shares dipping about 4% versus the S&P 500‘s 20% decline. The inventory dipped 0.6% within the third quarter.

Buffett continued to purchase the dip in Occidental Petroleum within the third quarter, as Berkshire’s stake within the oil large has reached 20.8%. In August, Berkshire acquired regulatory approval to buy as much as 50%, spurring hypothesis that it could ultimately purchase all of Houston-based Occidental.

The conglomerate amassed a money pile of practically $109 billion on the finish of September, in comparison with a complete of $105.4 billion on the finish of June.