Berkshire Hathaway owned by billionaire investor Warren Buffett on Saturday announced that it has posted a strong increase in the operating profits during the third quarter of the current financial year. The increase in operating profits comes at a time when the US economy is fighting high inflation in the economy and world is expecting a global economic slowdown by the next financial year.
The total operational earnings of Berkshire Hathaway during the third quarter stood at 7.76 billion dollars which is nearly a 20 percent increase from the same period in the previous financial year. Owner of the company, Warren Buffett is continuing to buy back his stock at a modest pace.
The highest earnings of the conglomerate came from the utilities and energy business where it made 1.585 billion dollars in income. This was a big jump up from 1.496 billion dollars last year.
Income from investments in the insurance sector was posted at 1.408 billion dollars, up from 1.161 billion dollars in 2021. Statistics also suggest that underwriting in insurance businesses resulted in the company suffering a loss of 962 million dollars in the third quarter.
Despite strong revenue growth in insurance and energy businesses, railway businesses owned by Berkshire Hathaway suffered a marginal loss in income as earnings dipped to 1.442 billion dollars from 1.538 billion dollars in 2021.
Even though the company posted an increase in operational earnings, the Omaha-based investment conglomerate posted a net loss of 2.69 billion dollars during the third quarter. In the same period of the previous financial year, the company had posted a net profit of 10.34 billion dollars. The quarterly loss was largely due to a drop in Berkshire’s equity investments amid the market’s rollercoaster ride.
The investment business of the company suffered a loss of 10.1 billion dollars. Veteran investor Warren Buffett reportedly told company shareholders that the amount of investment losses in any given quarter is “usually meaningless.”
There are also rumors that Warren Buffett might buy an entire stake in Occidental Petroleum. Occidental Petroleum based in Houston, Texas is in the business of hydrocarbon exploration. Buffet has alrea dy purchased a stake worth 20 Percentage in the company. A few weeks ago, Berkshire Hathaway received regulatory approvals from the relevant authorities to purchase up to 50 percent stake in Occidental Petroleum.