> Warren Buffett Blog: Is Warren Buffet's Berkshire Hathaway a Safe Bet? - Wall St. Cheat Sheet

Wednesday, November 6, 2013

Is Warren Buffet's Berkshire Hathaway a Safe Bet? - Wall St. Cheat Sheet

Berkshire Hathaway Inc.  the multinational conglomerate holding company run by Warren Buffett, announced late last week that third-quarter profit had climbed 29 percent on investments and gains at non-insurance businesses including the railroad company Burlington Northern Santa Fe (BNSF), Bloomberg reports.


Berkshire’s subsidiaries — which include businesses that haul freight, insure cars, generate electricity, make building supplies, and sell various products — has positioned itself as one of the safest investments as the U.S. economy improves and consumer demand and the housing market continue to improve over time. Bill Smead, chief executive officer of Smead Capital Management, told Bloomberg that acquisitions and investments had positioned Berskhire as “an all-in bet on the U.S.,” with a “lot of earnings leverage.”


The raw numbers showed Berkshire’s net income rose $5.05 billion, or $3,074 per share, from $3.92 billion, or $2,373, year over year. Operating earnings, which exclude some investment results, ended up slightly lower than the estimates by three analysts surveyed by Bloomberg — estimated to hit a $2,403 average, the operating earnings were reported at $2,228 per share. Class B shares fell 0.2 percent to $114.99 in New York after the results were released.