Warren Buffett’s Berkshire Hathaway announced impressive Q3 2023 operating earnings of $10.8 billion, marking a 40.6% increase from the previous year’s $7.7 billion.

However, Berkshire reported a net loss of $12.8 billion for the quarter, compared to a loss of $2.8 billion in the same period in 2022.

This loss was attributed to investment losses amounting to $23.5 billion, a significant increase from the $10.4 billion loss incurred during the same period last year.

On a brighter note, the company’s insurance underwriting business recorded earnings of $2.4 billion, up from a $1.1 billion loss in the previous year’s third quarter.

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Insurance investment income increased to $2.5 billion, up from $1.4 billion in the same period in 2022.

Geico, one of the largest insurance companies owned by Berkshire, reported a notable underwriting profit of $1.053 billion, a significant improvement from the $759 million loss it experienced in the third quarter of the previous year.

During the third quarter, Berkshire bought back approximately $1.1 billion worth of its stock, bringing the total stock repurchases for the year to approximately $7 billion.

Perhaps the most striking highlight is Berkshire’s record-high cash hoard, which stood at $157.2 billion, up from $147.4 billion in the second quarter of 2023.

This impressive cash reserve underscores Berkshire’s financial strength and positions the company for future investment opportunities.

Buffett’s successful investments in Japan’s top five trading companies, which initially totaled $6.7 billion in 2020, have also paid off handsomely.

This year, Berkshire doubled down on these stakes, increasing its holdings in each company to an average of over 8.5%.

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The Japanese stock market’s surge to 33-year highs contributed to Berkshire’s gains from these investments.

Despite Berkshire Hathaway Class A shares rising 13.9% for the year, the company has slightly underperformed the S&P 500 benchmark as of the close of Friday’s trading session.