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Berkshire Hathaway, the conglomerate of billionaire Warren Buffett, explained this weekend that his quarterly profits had almost doubled as his insurance business was very active during the hurricane season.
Warren Buffett's companies have benefited from tax cuts in the United States.
The good results give Buffett more cash to continue investing even though he has already said he has struggled to find good deals in the market.
Similarly, it allows him to buy back his own shares for a value of nearly $ 1,000 million, which he made between July and September.
Its operating profit in the third quarter of 2018 doubled to $ 6.880 million, against $ 3.44 billion predicted by Wall Street analysts.
"This is arguably one of the best reports of an American company," said Bill Smead, managing director of Smead Capital Management, one of Berkshire's shareholders.
Berkshire Hathaway said his net profit for the third quarter of this year had risen more than 355 percent to $ 18.5 billion, despite the new accounting rule that requires companies to report unrealized investments with profits.
Buffett said that such a rule can lead to "capricious" results and can even deceive investors, who "should take a closer look at the operating profits".
Buy your own shares
Berkshire announced the redemption of $ 928 million of its own shares in the third quarter of 2018.
The company closed the month of September with $ 103.6 billion in cash, short-term treasury bonds and other investments.
The last major acquisition of Warrent Buffett dates back to January 2016, when it paid $ 32,100 million to the US aircraft parts manufacturer, Precision Castparts.
The results of companies managed by Berkshire Hathaway also improved for its rail segments, utilities and financial services.
Berkshire Class A shares closed at $ 308,411.01 each, yielding 3.6% this year, slightly better than the 3.4% return of the S & P 500 Index.
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