Saturday , February 4 2023

Five key findings of the Börse Express – Berkshire Hathaway report


Berkshire Hathaway (WKN: 854075) (WKN: A0YJQ2) announced 3Q results on the weekend. The company posted double-year profits, slightly exceeding expectations. This is certainly good news, but it's always important to look at the numbers in the headline.

Find out about Berkshire's third quarter performance and what you know so far.

Berkshire's insurance business had a strong quarter.

Berkshire Hathaway is essentially an insurance company so we start here.

Berkshire earned $ 1.98 billion in the third quarter of 2017. The profits are divided into two ways that an insurance company has to make money: donations and investments. Most of the insurance profits (73%) were 18% higher than the previous year in connection with transfer income. Berkshire's insurance business, which suffered a large loss in the third quarter of last year, generated $ 441 million in acquisitions.

All of Berkshire's businesses performed well.

My colleague, Jordan Wathen, posted an excellent analysis of Berkshire earnings to read all the numbers, but the bottom line is that Berkshire's work is in full swing.

In addition to insurance revenues, BNSF railway unit net profit grew 34% year-on-year and the supply sector increased net profit nearly 15%. Finally, all insurance, services and retail (MSR) sectors, excluding insurance, rail or public works, accounted for the best part of the report with a profit of $ 2.1 billion.

Berkshire invested more than $ 14 billion in stocks,

According to the quarterly report, large corporations invested $ 14.4 billion in their stock portfolios. But we do not yet know what the company has bought.

Buffett, in a recent interview, Apple (WKN: 865985) The share price has increased in the third quarter, but we do not know the details. More information about Berkshire selling and selling property every quarter should wait until it is announced in mid-November.

Buffett and his team thought Berkshire was undervalued in the third quarter.

Berkshire's new redemption policy was introduced in the third quarter. Buffett and Vice President Charlie Munger can now use Berkshire cash to get a discount on shares if two people agree to a stock deal.

They were undoubtedly using this point as it was known that Berkshire bought a stock of $ 928 million in August.

What You Need to Know: Less than $ 1 billion is not a huge sum for a multi-billion dollar corporation like Berkshire. But Buffett is underscoring the assumption that Buffett and Mogger agreed that Buffett is getting a significant discount at the time of the redemption. In the window where the redemption occurred, Berkshire traded about $ 204 to $ 209, so according to the new redemption policy, Buffett and Mencius can find stocks at this level inexpensively.

Berkshires Geldberg has contracted, but major purchases may occur after this quarter.

As cash holdings have increased in recent years, Berkshire is considering ways to use the money in 2018, and the third quarter is no exception. Berkshire, including buybacks and unlisted stocks, announced all of its profits and reduced its cash holdings by $ 7.5 billion to $ 103.6 billion at the end of the quarter.

However, the largest number of purchases in Berkshire this year will be in the third quarter. Stock market volatility and sharp declines have not materialized until October, and quarterly quarterly reports are only available until September 30th.

SPX data of YCHARTS.

These are the times when Buffett likes to work for him with his money. We do not know which product Buffett (or his colleagues) purchased to name just a few Berkshire stock options, but Apple has dropped 11% since September 30, 2010. Bank of America (WKN: 858388) 9% or more Wells Fargo (WKN: 857949) by 7%.

Once again, we do not know what Buffett and his team did in recent volatility. However, we have a faint skepticism that Berkshire's quarterly report and fourth-quarter stock buying will bring out the most exciting information of the year.

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This article was written in English by Matthew Frankel and published on on 06.11.2018. Our readers have been translated to participate in discussions.

Motley Fool owns the stock and recommends Apple. Motley Fool offers the following options: From January 2020 Apple will charge $ 150, Short will short-circuit Apple in January 2020 and $ 155. Motley Fool recommends Berkshire Hathaway (B-Stocks).

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