Warren Buffett’s investment company Berkshire Hathaway reported third quarter earnings today. The company’s net income totaled $682 per share for the third quarter, compared to $2,942 per share in the same period of 2007, a 70% drop in net income. Berkshire bought $4 billion of stocks during the third quarter.
Berkshire Hathaway Third Quarter Report
Berkshire Hathaway’s net earnings were hurt by declining insurance profits and unrealized investment losses. Berkshire reported a $27.9 billion in revenue during the quarter, down from $29.9 billion a year ago. Berkshire’s insurance businesses did not perform as well during these tough economic times. Operating profit dropped to $81 million from $486 million a year ago.
In the meantime, Berkshire Hathaway is making investments. For the first nine months of 2008, Berkshire made $32.6 billion of investments in fixed maturity securities. During the third quarter alone, Berkshire spent about $6 billion on fixed maturity securities, which may include the reported deals with Goldman Sachs (GS, Financial) and General Electric (GE, Financial). Berkshire also bought about $4 billion of stocks. Berkshire’s equity holdings total $76 billion as of September 30th, 2008.
What could Warren Buffett buy with the $4 billion during the third quarter? We are hosting a contest here on GuruFocus for users to predict what stocks he bought during the third quarter. You are invited to participate.
In October, Warren Buffett wrote an article on the New York Times saying that stocks would perform substantially better than cash over the next ten years, and he also said he is now 100% in stocks in his personal account. So it’s not surprising that Warren Buffett bought large chunks of stocks this year, totaling $9.4 billion dollars by September 30th.
As of Sept. 30, Berkshire Hathaway has $27.9 billion of cash, which is down from $37.7 billion a year ago. In an annual meeting two years ago, Warren Buffett said he had an elephant gun, but could not find elephant. These days it seems that he finds a lot of elephants, and his cash positions have dramatically decreased.
The stocks market just had one of its worst months in more than two decades. Stock market is also at its lowest valuation in decades. We expect that Warren Buffett bought a lot stocks in the 4th quarter. Why? “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors.” Warren Buffett wrote in his October NYT article.
Please participate in our contest to predict what stocks Warren Buffett bought.
Also check out:
Berkshire Hathaway Third Quarter Report
Berkshire Hathaway’s net earnings were hurt by declining insurance profits and unrealized investment losses. Berkshire reported a $27.9 billion in revenue during the quarter, down from $29.9 billion a year ago. Berkshire’s insurance businesses did not perform as well during these tough economic times. Operating profit dropped to $81 million from $486 million a year ago.
In the meantime, Berkshire Hathaway is making investments. For the first nine months of 2008, Berkshire made $32.6 billion of investments in fixed maturity securities. During the third quarter alone, Berkshire spent about $6 billion on fixed maturity securities, which may include the reported deals with Goldman Sachs (GS, Financial) and General Electric (GE, Financial). Berkshire also bought about $4 billion of stocks. Berkshire’s equity holdings total $76 billion as of September 30th, 2008.
What could Warren Buffett buy with the $4 billion during the third quarter? We are hosting a contest here on GuruFocus for users to predict what stocks he bought during the third quarter. You are invited to participate.
In October, Warren Buffett wrote an article on the New York Times saying that stocks would perform substantially better than cash over the next ten years, and he also said he is now 100% in stocks in his personal account. So it’s not surprising that Warren Buffett bought large chunks of stocks this year, totaling $9.4 billion dollars by September 30th.
As of Sept. 30, Berkshire Hathaway has $27.9 billion of cash, which is down from $37.7 billion a year ago. In an annual meeting two years ago, Warren Buffett said he had an elephant gun, but could not find elephant. These days it seems that he finds a lot of elephants, and his cash positions have dramatically decreased.
The stocks market just had one of its worst months in more than two decades. Stock market is also at its lowest valuation in decades. We expect that Warren Buffett bought a lot stocks in the 4th quarter. Why? “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors.” Warren Buffett wrote in his October NYT article.
Please participate in our contest to predict what stocks Warren Buffett bought.
Also check out:
