Warren Buffett’s Berkshire Profit soars 82% despite pandemic

Warren Buffett’s conglomerate announced their third-Quarter financial results reporting 82% increase in profit due to soared value of its portfolio but the company said that his associated businesses have been damaged significantly by the pandemic such as BNSF railroad.
The Berkshire said that it earned $30.1 billion, or $18,994 per Class A share, during the reported quarter which increased from $16.5 billion a year ago. The increase was due to 24.8 billion improvement in the estimated value of Berkshire’s investments in Apple and Bank of America. Berkshire’s operating earnings exclude investments and derivatives if included Berkshire’s operating earnings declined by 32%, to $5.49 billion, or $3,452.45 per Class A share.
Berkshire said that its revenue remains close to last year’s level during the current economic challenges. Shanahan said that Berkshire is among the few companies who are only reporting a modest decline in revenues.
BNSF third-quarter profit was improved from the 2nd quarter but still less than the last year third-quarter profit due to slow freight traffic.
Berkshire’s utility unit reported with $1.395 billion in profits, up 18% from last year. The Precision Castparts company reported 80% drop in its pretax earnings due to pandemic’s impact on aviation. The Company is looking to slash 40% of its workforce by the end of 2020.
The Berkshire continued to buy its shares in the third-quarter and company spent $9 billion in repurchasing of shares and the company still held $145.7 billion in cash and short-term investments at the end of the third quarter even after buying the $2.1 billion Bank of America stock and company promised to pay $4 billion for Dominion Energy.
The Berkshire also bought just over 5% stake in five major Japanese trading houses for roughly $6 billion gradual investment over the year. There are more than 90 companies under the Berkshire portfolio and also has major investments in those companies.