Berkshire Hathaway announced a substantial acceleration in its share repurchase program during the third quarter, purchasing $9.6 billion of company stock. This represented more than a doubling compared to the $4.5 billion repurchased in the second quarter and brought the company’s total buyback activity for the year to approximately $14.4 billion.
The increased repurchase activity occurred alongside declining financial performance across the conglomerate’s operations. Operating earnings from wholly-owned businesses totaled $12.705 billion, representing a 5.8% decrease from $13.485 billion in the corresponding year-earlier period. The insurance segment experienced particular weakness, with underwriting profits tumbling 43% year over year to $1.352 billion, while insurance investment income fell 14% to $2.734 billion. Offsetting these declines, the railroad, energy, and manufacturing divisions all posted year-over-year earnings growth.
The company’s net earnings reflected even steeper declines when accounting for its extensive securities portfolio. Overall profits dropped 28% in the quarter to $22.112 billion from $30.796 billion a year prior. Investment gains fell nearly 50% to $9.407 billion during the period.
Despite the earnings pressure, Berkshire shares have demonstrated strong recent performance. Class A shares gained more than 12% over the preceding month, outpacing the S&P 500’s decline of 5.5% during the same timeframe. Year to date, Berkshire had advanced 13%, compared to a 7.8% gain for the broader market index. The company’s five largest equity holdings remained unchanged at Alphabet, American Express, Apple, Bank of America, and Coca-Cola.
Berkshire’s liquidity position strengthened modestly, with total cash growing 3% to $377.435 billion from $365.514 billion sequentially. However, when excluding cash held by rail and utility subsidiaries and T-bill payables, adjusted cash holdings totaled $352.3 billion, down 1.9% quarter over quarter.
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