Berkshire Hathaway’s operating profits soared in the third quarter of 2018, as quarterly operating profit was almost double from 2017.
For the 9 months of 2018 the net earnings attributable to Berkshire shareholders reached $29.413 as compared to $12.389 billion for the first 9 months of 2017.
Insurance underwriting income was one of the drivers of the growth, generating $441 million in the third quarter, versus a loss of $1.4 billion in the year-ago period.
The company also posted strong revenues in its railroad, utilities and energy, and its other businesses.
Berkshire’s enormous minority positions in a slew of leading corporations, including Apple, Southwest Airlines, General Motors, Bank of America, American Express, and Wells Fargo, grew by almost $12 billion.
Berkshire also reported that its insurance float had grown to $118 billion, an increase of $2 billion over the end of the second quarter.
The conglomerate also revealed that Warren Buffett had Berkshire repurchase over $928 Million in Berkshire Stock.
The move was the first buy-back since 2012 and confirms Buffett’s position that the shares are undervalued.
© 2018 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.