Berkshire’s Q3 operating profit fell as insurance weakened, but Greg Abel stepped up buybacks while the cash pile grew to a new record.
Greg Abel’s first year as CEO is showing a clearer pattern: more buybacks and a bigger cash pile. Berkshire bought back about $9.6 billion of its own shares in Q3, double the $4.5 billion in Q2 and well above the roughly $1.6 billion analysts expected. Cash still rose to a record $377.4 billion, up from $364.7 billion at the end of June, even after Berkshire completed its $6.8 billion purchase of homebuilder Taylor Morrison.
Operating profit fell 5.8% to $12.7 billion, mainly because insurance underwriting profit dropped 43% as property insurance became more competitive. The railroad and energy businesses made up part of the gap: BNSF profit rose 19% and BHE profit rose 8%.