Wednesday, December 1, 2021

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    Berkshire Hathaway net earnings down by two-thirds

    Warren Buffett’s Berkshire Hathaway reported that third-quarter profits were down two-thirds compared to the same period last year. Meanwhile, the pile of cash set a new record despite increased stock repurchases.

    A vast conglomerate said on Saturday that third-quarter net income fell to $ 10.34 billion, or $ 6,882 per Class A share.

    Berkshire’s operating profit was $ 6.5 billion, up 18% year-over-year, as Buffett favored it as a performance indicator as it removed fluctuations in its equity portfolio.

    Cashpile is a record $ 149 billion, despite investment companies increasing share buybacks in the third quarter to buy back $ 7.6 billion worth of shares, bringing the nine-month total to just over $ 20 billion. Has increased to.

    Due to the high reputation of legendary investors, some long-time investors have been dissatisfied with Buffett’s big deal and Berkshire’s ever-growing pile of cash. Some people have.

    The conglomerate’s diverse business units have been able to embark on a widespread economic recovery in the wake of the Covid-19 pandemic, but are now exposed to the subsequent challenges posed by the public health crisis.

    Railroad revenues increased 11.8% from a year ago to $ 4.59 billion, but Berkshire said it was responsible for “material, freight and other input costs” due to “continuous disruption” in the global supply chain. I experienced an increase. ”

    Berkshire also saw a significant increase in aerospace revenue or revenue from Precision Castparts, a metal manufacturing company acquired in 2016, as supply chain disruptions and pandemics continue to impact civilian air travel. I warned that it could not be expected.

    Some of the company’s other businesses, which span housing, manufacturing and consumer retail, have a relatively solid picture of customer demand, but reduced availability of inputs caused by supply chain disruptions. It is also influenced by.

    One of the weaknesses of our business was Berkshire’s underwriting business. The project saw losses increase to $ 784 million in the three months to September due to catastrophes such as extratropical cyclones in the United States and floods in Europe. However, insurance return income increased slightly from $ 1 billion in the year-ago quarter to $ 1.2 billion in the third quarter.

    Berkshire’s Class A shares are on par with the benchmark S & P 500, up 26.3% so far this year.

    The fair value of Berkshire’s equity investment increased by less than 1% between June 30 and the end of September to $ 310.7 billion. About 70% of the value of the portfolio is made up of four companies. American Express, Apple, Bank of America, Coca-Cola.

    According to Berkshire, Apple shares at the end of September increased from $ 124.3 billion at the end of June to $ 128.4 billion, the largest increase in the quartet. Investment in coke was only one of four declined in the September quarter.

    Berkshire Hathaway net earnings down by two-thirds Source link Berkshire Hathaway net earnings down by two-thirds

    The post Berkshire Hathaway net earnings down by two-thirds appeared first on California News Times.

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