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New York (APA / Reuters) – US flagship investor Warren Buffett has doubled its third quarter results with its subsidiary Berkshire Hathaway. The company benefited from good insurance business and a reduction in taxes.
The operating result rose from 3.44 billion euros the previous year to 6.88 billion dollars (more than 6 billion euros), announced Saturday the company based in Omaha, Nebraska. Analysts expected $ 6.11 billion.
Insurance earned $ 441 million, after a loss of $ 1.4 billion in the prior year quarter, as a result of lower claims. Last year, regulatory costs related to the damage caused by three hurricanes and an earthquake in Mexico had a negative impact. Berkshire Hathaway has also gained more in other industries. However, in the food sector, for example, higher costs for fuels and raw materials have hurt profits.
Although Buffett has $ 100 billion in cash, the global manager, engaged in trading, has found fewer and fewer investment opportunities. As a result, Berkshire Hathaway has now announced the repurchase of $ 928 million worth of treasury shares. Investors have welcomed this step. "This confirms what we have known for a long time, namely that the stock was significantly undervalued," said Steven Check of Check Capital Management. Buffett's most recent major acquisition dates back almost three years, with the acquisition of the Precision Castparts aircraft supplier for $ 32.1 billion.
The 88-year-old investor has been at Berkshire Hathaway for more than 50 years. The group is active in the sectors of insurance, energy, railways, food, clothing and real estate.
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