Warren Buffett’s Berkshire Hathaway reported a -$2.7 billion loss on November 5, 2022. That’s better than the -$44 billion loss he reported for Q2 2022. Buffett has lost around -$47 billion in Q2 and Q3 2022.
Berkshire Hathaway announced a quarterly loss of $3 billion on Saturday, November 5, 2022. That’s down from a $10 billion profit a year ago when the stock market was soaring. Berkshire reported a $44 billion loss for the second quarter of this year.
Berkshire reported revenue of $77 billion, up 9%. Berkshire Hathaway reported operating earnings that totaled $7.761B in Q3, up 20% YoY; insurance-investment income of $1.408B, up from $1.161B YoY; earnings from utilities and energy businesses of $1.585B, up from $1.496B YoY.
In the third quarter, the insurance division of the company had a loss of nearly $1 billion. Geico, the auto-insurer, had the biggest loss, at $759 million.
Hurricane Ian caused $3 billion in tax losses for the insurance units. Hurricane Ida and major floods in Europe caused last year, $2 billion in losses.
Even though Berkshire has been investing in the stock market this year, it has $109 billion in cash. That is up slightly from the $105 billion it held at the end of the second quarter because Berkshire’s businesses generated more cash than it spent. After the third quarter, Berkshire spent $12 billion to complete its acquisition of the Alleghany insurance conglomerate.
BNSF railroads hauled 5% less freight and profit declined 6% to $1 billion. Fuel costs increased and they adjusted salary costs to reflect the raises that railroads have agreed to pay their union workers. Most of BNSF’s competitors reported significant increases in profits during the quarter.
Berkshire also owns several businesses that are connected to the housing market. The housing market has gotten a lot weaker over the past year, as mortgage rates have gone up by over 100 percent. So Berkshire’s extensive network of real estate brokers and its Clayton Homes manufactured housing unit could suffer in the months ahead.
This year, Buffett bought $12 billion worth of Occidental Petroleum stock and $20 billion worth of Chevron shares. Besides those oil sector investments, Berkshire also bought over 120 million shares of printer maker HP and bet big that Microsoft’s acquisition of video game maker Activision Blizzard will go through by buying nearly 70 million shares of the game maker.
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Berkshire Hathaway Stock Technical Analysis
Berkshire Hathaway stock is in a technical weak downtrend. The stock is in an intermediate-term uptrend channel chart pattern. Short-term the stock is in a downtrend. As Berkshire’s Saturday, November 5, 2022, financial report circulated through the MSM on Monday, November 6, 2022, keep your eyes on the MACD. If the MACD goes negative, the intermediate-term uptrend channel will probably get a support test at $411,893.