The conglomerate posted a jump in operating earnings, aided by insurance but overall quarterly loss widened, hit by the stock market downturn
Warren Buffett’s Berkshire Hathaway ended the third quarter with a record cash pile and reported a deeper overall loss due to weakness in the stock market but operating earnings rose.
Shares of Apple AAPL, -0.52%, Berkshire’s largest stock investment, fell 12% in the quarter. Other big holdings also saw their stock prices decline. American Express shares AXP, +1.27% dropped 14%, while Coca-Cola KO, -0.61% shares retreated 7% and Bank of America BAC, +2.90% shares slipped 4.6%. Prices of the four stocks have turned higher in the fourth quarter though. Shares of a fifth big stock position, Chevron CVX, -0.77%, advanced 7.
However, the conglomerate also reported operating earnings of $10.76 billion, a jump on the prior year, as it benefited from the impact of elevated interest rates on the cash pile. “We believe that investment gains and losses on investments in equity securities….are generally meaningless in understanding our reported quarterly or annual results or evaluating the economic performance of our operating businesses,” Berkshire said in a securities filing on Saturday.
Despite increasing Berkshire’s acquisitions in recent years, the company has struggled to find many big deals leaving Buffett with more cash. Since the pandemic, he’s bought shares in Occidental Petroleum Corp. OXY, -0.41% and struck a $11.6 billion deal to buy Alleghany Corp. Buffett has also leaned heavily on share repurchases amid the dearth of alternatives.
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