Highlights of Berkshire Hathaway’s Third Quarter Report

Berkshire’s operating earnings in Q3 up 33.6% (insurance-underwriting up 215.9%, BNSF +4.8%, BH Energy -8.6%, manufacturing, service and retailing up 8.2%). (Operating earnings up 12.4% when excluding foreign exchange gains and losses.)

Geico’s pretax underwriting profit fell 13% as a result of higher claims. Additional policies were added.

Berkshire’s cash including equivalents totaled a record $358 billion, after accounting for a payable for purchasing short-term government debt, up from $344 billion at the end of June.

No share repurchases during Q3.

Berkshire sold $12.5 billion in equities in Q3 and bought $6.4 billion in equities (net sale of equities = $6.1 billion).

Berkshire likely further reduced its stake in Apple during Q3 and in its financial related stocks but added $4 billion on a cost basis to “Commercial, Industrial, and Other”. Its 13F will be released on November 14.

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