Warren Buffett’s Berkshire Hathaway Reports 17% Increase in Profits
OMAHA, Neb. (AP) — Warren Buffett’s Berkshire Hathaway reported a 17% increase in profits, attributed to a mild hurricane season and paper investment gains. The company is also preparing for Buffett to step down as CEO in January.
Despite a recent $9.7 billion investment in OxyChem, Berkshire still holds a cash pile of $381.7 billion as of September. This investment is the largest deal the company has made in years.
Investors are keenly watching Vice Chair Greg Abel, who is set to succeed Buffett as CEO in January. However, Buffett will retain his position as chairman at Berkshire. The Class A stock closed at $715,740, down from its peak of $812,855.
Berkshire reported earnings of $30.796 billion, or $21,413 per Class A share, in the quarter, up from last year’s $26.251 billion.
Buffett has always emphasized focusing on Berkshire’s operating earnings to gauge the performance of its various companies, including insurers like Geico and BNSF railroad. Operating profit rose to $13.485 billion, or $9376.15 per Class A share, thanks to a strong rebound in insurance companies.
Analysts predicted operating earnings of $8,573.50 per Class A share, but Berkshire surpassed expectations with its strong performance.
Berkshire’s insurance underwriting profit rose to $2.369 billion, with fewer catastrophic losses from hurricanes compared to the previous year. Gains on debt held in foreign currencies also contributed to the bottom line.
While most of Berkshire’s companies performed well in the quarter, utilities saw a decline of nearly 9% in profits to $1.489 billion.
