Berkshire Hathaway speeds up stock buybacks, though profit falls

Berkshire Hathaway has accelerated its stock repurchases, as CEO Greg Abel demonstrated a greater willingness than his predecessor Warren Buffett to put the conglomerate’s enormous cash hoard to use.The Omaha, Nebraska-based company also reported on Saturday lower third-quarter profit, with operating earnings down 6% to $12.71 billion and net earnings down 28% to $22.11 billion.These reflected declines in insurance businesses such as Geico, and lower gains on common stock investments.Berkshire said it repurchased $9.6 billion of its own stock between July and September and about $2 billion more in October, in addition to $4.8 billion earlier in the year.The quarter was the third since Abel, 64, became chief executive.

Buffett, 96, had difficulty finding things to buy toward the end of his 60 years at the helm.He remains chairman emeritus, after his son Howard Buffett replaced him as chairman in September.Following the repurchases, Berkshire ended September with $356.9 billion of cash and equivalents, down from $380.2 billion six months earlier.

Its biggest year for buybacks was 2021, when it repurchased $27 billion of stock.Berkshire owns dozens of businesses including several insurers and reinsurers, the BNSF railroad, utilities, industrial and manufacturing companies, and retail brands such as Brooks running shoes, Fruit of the Loom underwear and See’s Candies.It also owned $335.5 billion of stocks such as Alphabet, Apple and American Express as of Sept.

30.Many investors view the $1.21 trillion conglomerate as a barometer for the US economy.While the economy grew at an annualized 3.4% rate in the third quarter, according to the advance estimate of the Commerce Department’s Bureau of ⁠Economic Analysis, elevated inflation and gas prices are dampening consumers’ ability to spend.Berkshire said that “considerable uncertainty” remains about economic and geopolitical events, including tariffs and wars, and several retailing businesses are experiencing...