Berkshire Hathaway Profits Increase by 17%
Berkshire Hathaway's profits rose 17% this year, helped by a mild hurricane season and gains from paper investments. This growth comes as the company prepares for legendary 95-year-old Warren Buffett to step down as CEO in January.
Major Investment Highlights
Last month, Berkshire made a significant $9.7 billion investment in OxyChem. Despite this being the largest deal in recent years, it barely affected the $381.7 billion cash reserve Berkshire held at the end of September.
Leadership Transition
- Buffett’s vice chair, Greg Abel, is set to become CEO in January.
- Buffett will continue as chairman at Berkshire Hathaway.
Stock Performance and Buybacks
The Class A stock, which peaked at $812,855 before Buffett’s surprise announcement to step back at the May shareholders meeting, closed last Friday at $715,740. Berkshire did not repurchase any shares in the last quarter, indicating Buffett may view the stock as overvalued.
Market Expectations
“Investors will clamor for more details from Berkshire after Abel takes over, and calls for dividends will grow if the company can’t find better uses for its cash,” said CFRA Research analyst Cathy Seifert.
However, with Buffett remaining chairman, immediate changes to company strategy seem unlikely.
Author's Summary
Berkshire Hathaway reports strong profit growth amid Buffett's upcoming CEO transition, while investors watch closely for leadership shifts and potential dividends.