Berkshire Buys Back Another $9 Billion of Stock in Record Year

Warren Buffett is keeping up his record pace of buybacks.

  • Berkshire Hathaway Inc. spent the third quarter buying back $9 billion of its own stock, after Buffett abandoned his long-held aversion to that use of capital. That total was more than the conglomerate has repurchased in any full year.

Key Insights

  • Buffett was able to chip away at Berkshire’s cash pile in the third quarter, with that war chest dropping slightly to $145.7 billion. The funds, which still give him plenty of capital to deploy into acquisitions, stock purchases or buybacks, have recently been accumulating faster than Buffett can put it to work in higher-returning assets.
  • Berkshire operating profit dropped 32% in the third quarter, driven by an underwriting loss at its insurance units. Berkshire’s operations including its railroad and even some of its industrial businesses have been hit by the ripple effects of the pandemic.
  • Still, net income almost doubled as the company benefited from almost $25 billion in investment gains amid the market rally.

Get More

  • Berkshire’s press release ishere.
  • Berkshire stock climbed 20% in the third quarter, surpassing the 8.5% gain in the S&P 500 Index during the same period.

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