Warren Buffett’s Berkshire Hathaway faced a setback in the third quarter, as the company reported losses of $12.8 billion. The losses were attributed to the underperformance of the company’s portfolio. Despite this, Berkshire’s portfolio is still worth an impressive $341 billion.
Apple, one of Berkshire’s key investments, accounted for nearly half of the portfolio’s value. However, Buffett has continuously emphasized that investors should not solely focus on investment performance. Instead, he has directed attention towards Berkshire’s operating earnings, which saw a remarkable 41% surge to $10.8 billion.
Berkshire’s core operations heavily rely on insurance companies, such as Geico. Fortunately, these insurance companies have rebounded this year and generated significant profits, contributing to the company’s overall performance. Additionally, Berkshire’s other holdings, including well-known brands like See’s Candies, Dairy Queen, Coca-Cola, and American Express, also play a crucial role in supporting its core operations.
During the third quarter, the company sold $5.3 billion more stocks than it bought, resulting in increased cash availability. This surplus cash is patiently waiting for new investment opportunities that meet Berkshire’s criteria.
Despite the losses, Buffett remains confident in his investment strategies. In fact, he increased his holdings in Occidental Petroleum by 0.7% during the final weeks of October, bringing his total ownership to over 25% of the company. This move highlights Buffett’s continued belief in the long-term potential of certain investments.
While the losses may have attracted attention, Berkshire’s overall position remains strong. With a valuable portfolio and a surge in operating earnings, the company continues to demonstrate its resilience and ability to navigate through challenging market conditions. Investors should closely monitor Berkshire’s core operations and future investment moves as the company maintains its position in the market.
