- 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.
- Berkshire̵7;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.
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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.
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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.