Berkshire suffers loss as stock falls; operating profit breaks record

Warren Buffett’s Berkshire Hathaway reported its first overall quarterly loss in a year on Saturday after share prices of Apple and other companies it owns slumped, but said improving results at insurance companies helped boost operating profit at a record level.

Rising interest rates pushed U.S. Treasury yields above 5%, while fewer car accidents and a quiet hurricane season in the Atlantic Ocean boosted insurance company Geico’s business.

However, Berkshire has signaled it remains cautious regarding stock valuations and the market environment.

Omaha, Nebraska-based conglomerate’s cash flow grew in the third quarter to a record $157.2 billion after Berkshire sold $5.3 billion more in stock than it bought and slowly repurchased its shares for a total of 1.1 billion.

Berkshire also reported signs of caution among consumers.

It said its BNSF railroad was carrying fewer consumer goods and that fewer home purchases were hurting its namesake real estate brokerage firm and Clayton Homes unit. Forest River trailer and apparel sales from units like Fruit of the Loom also declined.

Jazwares, the toy maker that makes the popular Squishmallows and which Berkshire bought a year ago, helped offset those declines, generating $469 million in revenue in the quarter.

Source: Terra

Rose

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