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Home / Business / Warren Buffett’s Berkshire Hathaway is back in action, spending $ 4.8 billion in net worth on stocks and $ 9 billion in record acquisition in Q3

Warren Buffett’s Berkshire Hathaway is back in action, spending $ 4.8 billion in net worth on stocks and $ 9 billion in record acquisition in Q3



Warren Buffett
Berkshire Hathaway CEO Warren Buffett speaks to reporters while holding an ice cream at a trade show during the company’s annual meeting in Omaha, Nebraska on May 3, 2014.

  • Warren Buffett’s Berkshire Hathaway reported third-quarter earnings on Saturday.
  • The billionaire investor’s company bought a record $ 9 billion in shares and net spent $ 4.8 billion on shares after net selling $ 12.8 billion in the second quarter.
  • Berkshire̵
    7;s increased spending means their cash shrinks by about $ 1 billion to below $ 146 billion.
  • Buffett and his team announced more than $ 19 billion in investments last quarter, as they made deals with Dominion Energy and Scripps, and bought shares in Bank of America, Snowflake and five Japanese trading companies. Copy.
  • Visit the Business Insider homepage for more stories.

Warren Buffett’s Berkshire Hathaway increased its stock buybacks and bought more shares than it sold in the third quarter, signaling the famous investor’s conglomerate is opening a purse and looking for a bargain again. when covering up a pandemic.

Buffett’s company – owns a plethora of businesses including Geico, See’s Candies, and the North Burlington Railway, and holds billions of dollars of stakes in public companies like Apple, Bank of America and Coca-Cola – bought back $ 9 billion of his own stock. quarterly, breaking the previous record of $ 5.1 billion set in the second quarter.

Berkshire also reported a net buying of $ 4.8 billion in shares, after net selling $ 12.8 billion in shares in the second quarter. Increased spending means its cash dropped by about $ 1 billion to under $ 146 billion, leaving lots of opportunities for future transactions.

Read more: Warren Buffett’s Berkshire Hathaway has moved from being extremely cautious to a series of transactions over the past six months. We asked a bunch of experts to analyze its displacement strategy

The pandemic continued to weigh heavily on Berkshire’s finances in the previous quarter. It caused a 3% drop in sales due to a drop in sales in both the “insurance and other” and “rail, utility and energy” divisions.

For example, Precision Castparts sales fell more than 40% due to a drop in demand for aircraft parts, an 80% reduction in a manufacturer’s pre-tax income.

However, the skyrocketing value of Berkshire’s stake in Apple – the largest holding company – and other companies generated around $ 32 billion in return on investment, sending the company’s net income up 83%. 30.4 billion USD.

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Berkshire earnings underline its shift from cutting financial holdings and dumping airline stocks in the second quarter, to announcing investments worth more than $ 19 billion in the previous quarter.

Specifically, Buffett and his team made a $ 10 billion deal to buy the majority of Dominion Energy’s natural gas assets, investing $ 2.1 billion in Bank of America shares, exposes a $ 6 billion bet on five Japanese trading companies, bought $ 735 million in Snowflake stock when the cloud data platform was made public and agreed to hand over $ 600 million to Scripps to fund redemption for preference shares and a warrants.


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