The investment company Berkshire Hathaway of the American billionaire Warren Buffett increased its net profit to almost $ 30.2 billion in the third quarter, ie approximately 674 billion crowns. The company exceeded its profit by more than 80 percent in the same period last year, when Buffett’s empire earned $ 16.5 billion, or about $ 370 billion. According to the company’s press release, the reason was the growth in the value of its share investments.
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Buffett managed to make the most of his most significant investments, with shares of the largest country in his portfolio, technology company Apple, rising 26 percent during the quarter, and Coca-Cola shares rising more than 10 percent. For example, although the quarterly accounting profit is close to almost half of the previously planned expenditures of the Czech state budget for this year, Buffett himself is known to consider accounting gains from rising investment prices less relevant due to volatility and the fact that investments are not converted to cash at the results date. .
However, operating profit, which Buffett considers a better indicator of the company’s performance, fell by almost 30 percent year on year to nearly $ 5.5 billion. “Approximately $ 9 billion was used in the third quarter to buy back the company’s stock,” Berkshire Hathaway said in a press release today on the company’s results.
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Compared to the previous quarter, the company roughly doubled the repurchase of its own shares in the market, owning a total of almost $ 16 billion. At the beginning of this year, Berkshire stated that it would increase the intensity of the repurchase if the shares were cheap from the company’s point of view relative to assets and Buffett’s empire also had a sufficient amount of cash.
Since the peak of the pandemic neurosis in the second half of March this year, shares of Berkshire Hathaway alone have strengthened by about 28 percent, growing more slowly than the market as a whole, which doubled in price. However, one share on the stock exchange currently costs around $ 313,000, which virtually excludes it from the field of view of small investors.
The Berkshire Hathaway Group controls more than 90 subsidiaries operating in a variety of industries. Buffett is one of the richest people in the world and thanks to his successful investments he earned the nickname The Fortune Teller of Omaha.
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