5 Highlights of Berkshire Hathaway’s 2022 Third Quarter Report
(1) Berkshire’s third quarter operating earnings were up 20%. Berkshire reported a $962 million loss on insurance underwriting. Geico had the largest loss among its insurance businesses, with a pretax loss of $759 million. BNSF’s operating profit declined by 6%. Its utilities and energy business operating profit increased by 6%.
(2) Berkshire bought back $1.0 b of its shares in Q3 about equal to $1.0 b in Q2, but below $3.2 b in Q1. It bought its class A shares at an average price of about $425,000 in July and September and at about $444,000 in August. Its A shares closed at $432,000 on November 4.
(3) Berkshire’s cash increased to $109.0 b on September 30, 2002 from $105.4 b on June 30, 2022.
(4) Berkshire was a net purchaser of $4 b in equities during Q3. It purchased $9 b of equities (including $2 b of Occidental Petroleum and about $1 b of Chevron) and it sold $5 b. Berkshire reduced its equity holdings on a cost basis by $7.4 billion in Q3, including a reduction of $4.7 billion in “Banks, Insurance, and Finance” and $2.0 billion in “Commercial, industrial, and other”.
(5) Berkshire bought back 1,386 class A shares for about $500 – $600 million in Q4 through October 26.
