The Valor Blog.
Investment News and Views, Direct from Our Team.

Berkshire Hathaway Q3

Berkshire released their 3rd quarter results on the weekend.

  • Share buybacks increased to $9.3billion in the quarter totalling $16 billion for the 9 months. At this rate, they are buying back approximately 5% of shares per annum. This is enormously positive for the stock long-term.
  • Earnings (including stock gains) were significantly higher than expected due to Apple shares. Apple is now approximately ΒΌ of Berkshire. Operating earnings were a bit below what everyone was expecting, however still more than reasonable.
  • Precision Castparts has been a large detractor from the business in the last 12 months due to its aviation exposure. Berkshire took a $10bil write down which has materially affected reported earnings for the year.
  • Cash stood at $138.9 billion.

Key take away:

Berkshire remains a fortress. The balance sheet is pristine. The diverse cross section of businesses continues to churn out cash. Share buybacks are enormously positive for the shareholders over the long-term.