Berkshire Hathaway accelerates stock buybacks, operating profit falls
Berkshire Hathaway accelerated its share buybacks in the third quarter while reporting a decline in quarterly profit. The Omaha-based conglomerate repurchased $9.6 billion of its own shares between July and September, followed by approximately $2 billion in October. Meanwhile, the company posted a 5.8 percent decline in third-quarter operating earnings to $12.71 billion. The drop in quarterly profit was driven by shrinking investment gains. The accelerated repurchases occurred under new chief executive Greg Abel, signaling a more active approach to deploying the company cash reserves.
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- ✓ Berkshire Hathaway repurchased $9.6 billion of its own shares between July and September.
- ✓ The company repurchased approximately $2 billion in shares in October.
- ✓ Berkshire Hathaway reported operating earnings of $12.71 billion, representing a 5.8 percent decline.
What changed
Chief executive Greg Abel sharply increased share repurchases, funneling $9.6 billion into buybacks between July and September and another $2 billion in October.
Live updates
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Berkshire Hathaway Accelerates Buybacks as Profit Falls
Berkshire Hathaway accelerated its share buybacks in the third quarter while reporting a decline in quarterly profit. The Omaha-based conglomerate repurchased $9.6 billion of its own shares between July and September, followed by approximately $2 billion in October. Meanwhile, the company posted a 5.8 percent decline in third-quarter operating earnings to $12.71 billion. The drop in quarterly profit was driven by shrinking investment gains. The accelerated repurchases occurred under new chief executive Greg Abel, signaling a more active approach to deploying the company cash reserves.
Why it matters
The shift in capital allocation highlights a more aggressive use of the conglomerate massive cash hoard under new leadership compared to predecessor Warren Buffett. Plunging investment gains weighed on the bottom line even as the firm poured billions back into its own stock. The moves demonstrate how the organization is adjusting its strategy to deploy reserves.
What is confirmed
- Berkshire Hathaway repurchased $9.6 billion of its own shares between July and September.
- The company repurchased approximately $2 billion in shares in October.
- Berkshire Hathaway reported operating earnings of $12.71 billion, representing a 5.8 percent decline.
What to watch next
- Future quarterly repurchase totals under CEO Greg Abel
- Further deployment strategies for the conglomerate cash reserves
confidence 95%Sources used for this update (12)
- www.investing.com — Investing.com - Stock Market Quotes & Financial News
- www.globalbankingandfinance.com — Latest Banking & Finance News & Analysis
- nypost.com — New York Post – Breaking News, Top Headlines, Photos & Videos
- www.thestar.com.my — AI worries expose dollar's hot-money problem
- CNBC — Berkshire Hathaway more than doubles buybacks in third quarter as earnings decline
- WSJ — Berkshire Hathaway’s Quarterly Profit Falls After Investment Gains Shrink
- Financial Times — Berkshire Hathaway ploughs $9.6bn into share buybacks
- Reuters — Berkshire Hathaway accelerates stock buybacks, operating profit falls
- Yahoo Finance — Berkshire Hathaway Inc. News Release
- finance.yahoo.com — Berkshire Hathaway Reports 5.8% Decline in Q3 Operating Earnings to $12.71 Billion
- www.tekedia.com — Berkshire Hathaway Accelerates $16.4bn Share Buybacks Under New CEO Greg Abel as Profit Falls
- www.thestandard.com.hk — Berkshire Hathaway accelerates stock buybacks, operating profit falls - The Standard
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