Berkshire Hathaway lost $ 2.69 billion in the third quarter

Berkshire Hathaway’s operating profit was $ 7.761 billion in the third quarter of 2022, a 20% increase over the same period last year.

The giant company spent $ 1.05 billion in stock repurchases, bringing its total purchases over the nine months to $ 5.25 billion. However, the Omaha-based company suffered a $ 10.1 billion loss on its investment during the market turmoil in the third quarter.

The company posted strong operating profit during the third quarter despite growing recession fears, while Warren Buffett continued to buy back its shares at a modest pace.

The group’s total operating income – which includes the profits of a large number of companies owned by conglomerates such as insurance, railways and utilities – reached $ 7.761 billion in the third quarter, in growth of 20% over the same period last year, according to a CNBC report.

Investment and insurance income was $ 1.408 billion, in increase compared to $ 1.161 billion the previous year. The company’s utility and electricity sector profits were $ 1.585 billion, in increase from $ 1.496 billion year-over-year. Railways profits fell to $ 1.442 billion from $ 1.538 billion in 2021.

Berkshire spent $ 1.05 billion in stock repurchases during the third quarter, bringing the nine-month total to $ 5.25 billion. The buyback rate was in in line with the $ 1 billion purchased in the second quarter. The buybacks were well below the CFRA’s expectations as its analyst estimated they would have been similar to a total of $ 3.2 billion in the first quarter.

However, Berkshire posted a net loss of $ 2.69 billion in the third quarter, up from $ 10.34 billion a year earlier. The quarterly loss is in largely due to a decline in the company’s equity investment during a market trip in constant evolution.

Berkshire suffered a loss of $ 10.1 billion in its investments during the third quarter, bringing its decline in 2022 to $ 63.9 billion. The amount of investment losses in every quarter, says Warren Buffett, is “usually meaningless”.

Buffett continued to purchase Occidental Petroleum in decline in the third quarter as Berkshire’s stake in the oil giant reached 20.8%. In August, Berkshire received regulatory approval to buy up to 50%, fueling speculation that it could eventually buy all of Houston-based Occidental.

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