13 11/20 13/11/2020

Berkshire Hathaway Q3 Earnings

Berkshire Hathaway (NYSE: BRK.A & BRK.B) reported outstanding Q3 results. The company was more profitable than both the past quarter and a year ago. So far, their debt level remained constant throughout the pandemic. The trailing twelve-month free cash flow is at its highest since 2017 and the company has a whopping $145 billion cash balance to be deployed. Something that stood out in Q3 was Warren Buffet’s $9 billion share repurchase. That was a value of $2.5 billion of the A shares and $6.7 billion of the B shares. The Oracle of Omaha only buys shares (including his own) when they are selling far below their worth. The Berkshire Hathaway shares are trading close to their all-time highs but that did not stop Warren Buffet from believing that the shares are worth more. In essence, he repurchased the shares because he expects the prices to increase significantly in the (near) future. With the $1.6 billion share repurchase in Q1, $5.1 billion in Q2, and $9 billion in Q3; we now stand at a value of $15.7 billion year to date. Talk about confidence. Despite the outstanding performance in Q2 and Q3, the company’s stock is still (slightly) down for the year.

Read more in this week's newsletter: Weekly Newsletter #46

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