Updated
Updated · Reuters · Nov 7
Berkshire Buybacks Hit $9.6 Billion as Q3 Operating Profit Falls 6%
Updated
Updated · Reuters · Nov 7

Berkshire Buybacks Hit $9.6 Billion as Q3 Operating Profit Falls 6%

3 articles · Updated · Reuters · Nov 7

Summary

  • $9.6 billion in third-quarter repurchases, plus about $2 billion in early October, signaled Berkshire Hathaway is deploying more of its cash into its own stock.
  • Operating profit fell 6% to $12.71 billion because insurance earnings weakened: segment profit dropped 26%, underwriting slid 43%, and Geico's pretax profit fell 45% on higher accident losses and ad spending.
  • Net income dropped 28% to $22.11 billion, though Berkshire says investors should look past swings from unrealized gains and losses on stocks it still holds.
  • Cash and equivalents still totaled $356.9 billion at the end of September, down from $380.2 billion in March, as CEO Greg Abel also backed AI-related Alphabet shares, bought Taylor Morrison for $6.8 billion and took a 4% stake in Bending Spoons.

Insights

Are Berkshire's aggressive share buybacks masking deeper fundamental flaws in its struggling insurance operations?
Why is Wall Street rewarding Berkshire with market-beating stock gains despite a massive plunge in overall earnings?
With Greg Abel steering capital, does Berkshire's massive Alphabet bet signal the end of its traditional value investing era?