Berkshire Hathaway posts a 40% jump in operating earnings, cash pile swells to a record $157 billion

cnbc.com:

Berkshire Hathaway on Saturday reported a big jump in third-quarter operating earnings, while sitting on a record amount of cash as Warren Buffett saw few dealmaking opportunities.

The Omaha-based conglomerate's operating earnings — which encompass profits made from the myriad of wholly owned businesses such as insurance, railroads and utilities — totaled $10.761 billion last quarter. That's 40.6% higher than the $7.651 billion earned from the same quarter a year ago.

Berkshire held a record level of cash at the end of September — $157.2 billion — topping the $149.2 billion high set in the third quarter of 2021.

The «Oracle of Omaha» has been taking advantage of surging bond yields, buying up short-term Treasury bills yielding at least 5%. The conglomerate owned $126.4 billion worth of such investments at the end of the third quarter, compared to about $93 billion at the end of last year.

Buyback activity continued to slow down as Berkshire shares roared to a record high during the quarter. The firm spent $1.1 billion to repurchase shares, bringing the nine-month total to approximately $7 billion.

Berkshire Class A shares have rallied nearly 14% this year. After reaching an all-time high on Sept. 19, shares have fallen about 6% from the peak.

Geico, the crown jewel of Berkshire's insurance empire and Buffett's "favorite child," reported another profitable quarter with underwriting earnings of $1.1 billion. The auto insurer is in the middle of a turnaround after losing market share to competitor Progressive.

BNSF, however, saw a 15% decline in earnings as the railroad division grappled with lower volumes and higher costs.

Buffett's company did post a significant investment loss of $24.1 billion in the third quarter,