Berkshire Hathaway (BRK) earnings Q3 2020
Berkshire Hathaway, led by Warren Buffett, recently announced its third-quarter financial results, showcasing significant achievements. The company reported a remarkable 40.6% surge in operating earnings, amounting to $10.8 billion, compared to $7.7 billion from the previous year. However, it reported a net loss of $12.8 billion, a significant increase from the $2.8 billion loss in the same period last year, largely due to substantial investment losses of $23.5 billion.
Berkshire’s insurance underwriting business played a pivotal role in its performance, generating $2.4 billion in earnings, a substantial improvement from the $1.1 billion loss in the previous year’s quarter. Furthermore, the company’s insurance investment income increased to $2.5 billion, up from $1.4 billion in the same period a year ago. Notably, Geico, one of the country’s largest insurance companies owned by Berkshire, reported a substantial underwriting profit of $1.053 billion, a significant improvement from the $759 million loss in the same quarter of the previous year.
Berkshire Hathaway also increased its stock repurchases, buying back approximately $1.1 billion in the third quarter, contributing to a nine-month total of about $7 billion in stock repurchases for the year. The company’s cash reserve reached a record-high of $157.2 billion.
Despite facing challenges such as investment losses, Berkshire Hathaway’s strategic moves in insurance and stock investments, as well as stock repurchases, have contributed to its financial resilience and growth in the third quarter. Additionally, the company’s investments in Japanese trading companies have proven fruitful, further bolstering its financial stability.
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