Buffett's Berkshire loses money as stocks offset demand

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Warren Buffett's Berkshire Hathaway posted a $2.69 billion third-quarter loss as rising inflation, falling stock investments and a big loss from Hurricane Ian offset improvement in many of the conglomerate's businesses.

Berkshire benefited from increased demand and prices for new home sales, industrial products and energy.

Berkshire also bought back more of its own stock but was cautious, repurchasing $1.05 billion, similar to the second quarter. It also bought back some stock in October. The quarterly net loss equaled $1,832 per Class A share, and compared with a profit of $10.34 billion, or $6,882 per share, a year earlier.

Operating profit, meanwhile, rose to $7.76 billion, or about $5,294 per Class A share, from $6.47 billion, or $4,331 per share, a year earlier. A strengthening US dollar led to $858m of third-quarter gains from Berkshire's non-dollar-denominated debt. Geico suffered its fifth straight quarterly underwriting loss, losing $759m before taxes, reflecting more frequent and costly accident claims, rising used car prices and car parts shortages. Written premiums barely changed.

 

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