Berkshire Hathaway Reports Q3 Net Loss Amid Rising Operating Profit

United States of America
Berkshire Hathaway reported a net loss of $12.77 billion in Q3 2023.
Berkshire Hathaway repurchased $1.1 billion of its stock in Q3, bringing the total buyback to about $7 billion for the year.
Operating profit rose by 41% to $10.76 billion, up from $7.65 billion a year earlier.
Rising interest rates increased yields on Berkshire's U.S. Treasury bill holdings above 5%.

Warren Buffett's Berkshire Hathaway reported a net loss of $12.77 billion in the third quarter of 2023, marking its first overall quarterly loss in a year. This loss was primarily attributed to falling stock prices, including a 12% decline in the stock price of Apple. Despite the net loss, the company's operating profit rose by 41% to $10.76 billion, up from $7.65 billion a year earlier. This increase in operating profit was largely due to improved results from insurance operations.

One of the key factors contributing to the improved results from insurance operations was the rise in interest rates, which increased yields on Berkshire's U.S. Treasury bill holdings above 5%. Additionally, fewer car accidents and a quiet Atlantic hurricane season bolstered the Geico car insurer and reinsurance businesses.

In the same quarter, Berkshire Hathaway also repurchased $1.1 billion of its stock, bringing the total buyback to about $7 billion for the year. However, it was noted that Buffett reduced the pace of share buybacks, buying back only $1.1 billion worth of Berkshire stock during the trailing 3 months. This suggests that Buffett continues to favor investment in U.S. Treasuries over equities.


Confidence

90%

Doubts
  • Contradiction between sources on the overall financial performance of Berkshire Hathaway in Q3 2023.

Sources

84%

  • Unique Points
    • Buffett reduced the pace of share buybacks, buying back only $1.1 billion worth of Berkshire stock during the trailing 3 months.
    • The article suggests that Buffett continues to favor investment in U.S. Treasuries over equities.
  • Accuracy
    • Warren Buffett's Berkshire Hathaway reported a 41% growth in operating income for Q3 2023, with earnings reaching $10.8 billion. This contradicts the Economic Times and Live Mint articles which state that Berkshire Hathaway reported its first overall quarterly loss in a year due to falling stock prices.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (90%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

86%

  • Unique Points
    • The third-quarter net loss was $12.77 billion, compared to a $2.8 billion loss a year earlier.
    • Berkshire also repurchased $1.1 billion of its stock in the quarter, bringing the total buyback to about $7 billion this year.
  • Accuracy
    • Berkshire Hathaway, owned by Warren Buffett, reported its first overall quarterly loss in a year due to falling stock prices. This contradicts the Seeking Alpha article which states that Berkshire Hathaway reported a 41% growth in operating income for Q3 2023, with earnings reaching $10.8 billion.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

87%

  • Unique Points
    • Rising interest rates increased yields on Berkshire's U.S. Treasury bill holdings above 5%, while fewer car accidents and a quiet Atlantic hurricane season bolstered the Geico car insurer and reinsurance businesses.
    • Berkshire's Q3 net loss quadrupled to $12.77 billion, primarily due to a 12% decline in the stock price of Apple.
  • Accuracy
    • Berkshire Hathaway Inc, owned by Warren Buffett, reported its first overall quarterly loss in a year due to falling stock prices, including Apple. This contradicts the Seeking Alpha article which states that Berkshire Hathaway reported a 41% growth in operating income for Q3 2023, with earnings reaching $10.8 billion.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication