This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXMPEC0409P_M.jpg
Despite these setbacks, the conglomerate managed to report a 40.6% surge in Q3 operating earnings to $10.761 billion. This was driven by rising interest rates that benefited its insurance businesses like Geico and BNSF Railway. These businesses generated $1.7 billion in interest income, which helped boost operating income to nearly $11 billion.
The company also reported an unprecedented cash reserve of $157.2 billion, propelled by Buffett’s strategy of acquiring high-yield short-term Treasury bills and amassing holdings of $126.4 billion. Charlie Munger hinted at a potential major acquisition in an interview with The Wall Street Journal, which could be a strategic move utilizing this record cash reserve.
However, despite soaring share prices, the company’s share buyback program slowed down, with just $1.1 billion spent in Q3. Berkshire Hathaway’s Class A shares appreciated nearly 14% this year but experienced a 6% slump from their September peak.
Among its portfolio companies, Geico reported strong underwriting earnings of $1.1 billion. In contrast, BNSF Railway faced a 15% profit drop due to dwindling freight volumes and escalating costs.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
