Berkshire Hathaway Reports Increased Liquidity: Buffett Gearing Up for Dip Buying?
Segueing into discussions about market valuations and opportunities, the market still appears overvalued from the perspective of Warren Buffett.
Berkshire Hathaway (NYSE:BRKb) (NYSE:BRKa), America's seventh-largest company by market capitalization, reported robust earnings in the third quarter.
Notably, the company also reported a substantial $10 billion increase in liquidity during the quarter, pushing its total liquidity to a record $157 billion, in close proximity to Apple (NASDAQ:AAPL)'s ($162 billion) liquidity.
The company disclosed operating profits of $10.76 billion, marking a substantial 41% increase, or $7.4 per Class A share. This performance was attributed to the impact of high interest rates on liquidity and gains in its insurance businesses.
However, when factoring in losses on investments and derivatives, Berkshire reported unrealized losses of nearly $12.8 billion, equivalent to $8.8 per Class A share, significantly exceeding the previous year's losses of $2.8 billion, primarily stemming from its stake in Apple, which experienced a 12% decline.
On a separate note, Berkshire Hathaway B reported third-quarter earnings per share of $10.22, which fell short of analysts' estimates of $4.34.
The company's revenue for the quarter reached $93.21 billion, exceeding estimates. Additionally, Berkshire Hathaway engaged in buybacks amounting to $1.1 billion during the third quarter, bringing the year-to-date total to approximately $7 billion.
Evaluating Berkshire Hathaway's Class A financial health through InvestingPro involves ranking the company across more than 100 factors in comparison to other firms within the same industry.
Source: InvestingPro
The company earned a score of 4 out of 5 by performing better than
Read more on investing.com
