Berkshire Hathaway Accelerates $9.6 Billion Stock Buyback Amid Earnings Dip
Berkshire Hathaway ramps up buybacks to $9.6 billion in Q3 as operating profits fall and cash reserves hit a record $377 billion.
POLICY WIRE — Omaha, Nebraska — Berkshire Hathaway has significantly increased its pace of share repurchases during the third quarter, signaling a shift in how the conglomerate utilizes its massive cash reserves.
The Omaha-based firm reported on Saturday that it spent $9.6 billion buying its own stock over the three-month period. This activity represents more than a doubling of the $4.8 billion in repurchases conducted during the first half of the year.
Despite the aggressive buyback strategy, the company saw a decline in its bottom line. Operating earnings dropped by 6% to $12.71 billion, largely due by softer performance within its insurance segment.
Insurance underwriting results specifically took a hit, with insurance profits falling by 26%. The decline was particularly pronounced at Geico, which weighed down the quarterly results.
While profits faced a downturn, Berkshire’s liquidity on hand surged to a record high of $377.4 billion. Analysts note that the increased buyback activity suggests CEO Greg Abel is more proactive in deploying capital compared to the approach of his predecessor, Warren Buffett.
Reporting by Policy-Wire (PW)em>
