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Investor Warren Buffett
Photo: Scott Morgan / REUTERS
Falling share prices and burdens in the insurance business have brought investor Warren Buffett's investment company Berkshire Hathaway a billion-dollar loss.
Because shares held by the US company conglomerate lost value on the stock exchanges and Hurricane Ian caused high insurance claims in Florida on September 28, Berkshire Hathaway announced a quarterly loss of $2.69 billion.
In the same period last year, a profit of 10.34 billion dollars had been posted.
The burdens again included the car insurance business of the subsidiary Geico.
Increasing amounts of damage, also as a result of increased prices on the used car market, and a lack of spare parts caused Geico to record its fifth quarterly loss in a row.
Profits at the US rail freight company BNSF shrank by six percent because the company was only able to pass on part of the increased fuel costs for its diesel locomotives to customers.
While falling share prices in financial holdings led to book losses, Berkshire Hathaway took the opportunity to enter the stock markets.
The group invested a total of 3.7 billion dollars in shares.
For example, Buffett increased his stake in the oil company Occidental Petroleum to 20.9 percent.
In light of the US Federal Reserve's interest rate hikes, Berkshire Hathaway benefited from rising profits with investments in US Treasury bonds.
Healthy quarterly results
The business of the group of companies in the energy, industry, services and retail sectors went well.
As a result, operating profit rose by a fifth to $7.76 billion from $6.47 billion a year earlier.
Edward Jones & Co analyst Jim Shanahan said the results were strong overall.
Berkshire Hathaway is proving resilient to inflation, rising interest rates, and supply chain issues.
Analyst Cathy Seifert from CFRA Research expressed skepticism about the prospects for the next twelve months in view of economic challenges, but spoke of healthy quarterly results.
The 92-year-old Buffett has headed the investment company since 1965 and is considered by his fans to be a role model for investors.
ssu/Reuters
