> Warren Buffett Blog: Berkshire Q3 numbers drop not a bad thing

Monday, November 10, 2014

Berkshire Q3 numbers drop not a bad thing

For the Q3 earnings, Berkshire Hathaway’s reported a net profit decline of 9% to $4.6 billion, or $2,811 per Class A share...... compared with $5 billion, or $3,074 per share, a year earlier.

A drop in earnings might sound bad, but the previous year numbers were driven by unusually good investment returns a year ago, when Berkshire Hathaway cashed in on a number of loans in made during the financial crisis, including investments in General Electric, Goldman Sachs, and Mars & Wrigley.

The company ended the quarter with more than $60 billion in cash. Warren Buffett likes to keep $20 billion sitting around as insurance for the insurance businesses. That left more than $40 billion for acquisitions.