Berkshire Hathaway Raises Buybacks to Record $9.6 Billion as Earnings Fall

Berkshire Hathaway's third-quarter results brought together two contrasting developments: falling earnings and a much larger commitment to buying back its own stock. Operating earnings fell 5.8% from a year earlier to $12.7 billion, according to Bloomberg.com.

The results also offered a look at capital allocation under new chief executive Greg Abel. The Financial Times World reported that Abel was a net seller of stocks as Berkshire spent $9.6 billion on share repurchases.

In the results released on November 7, Berkshire said it had accelerated repurchases during the third quarter, even as operating and overall profits declined, CNBC reported. Buybacks more than doubled.

The $9.6 billion repurchase total was a record, according to Bloomberg. Its coverage also identified weaker insurance earnings as part of the quarterly results.

The spending came alongside sales elsewhere in Berkshire's stock portfolio. The Financial Times World reported that Abel was a net seller of stocks, distinguishing the purchases of Berkshire's own shares from its activity in other companies' shares.

Berkshire still holds $377.4 billion in cash reserves. The record repurchases therefore sit alongside a substantial remaining cash balance, rather than marking its depletion.

The earnings decline has not been matched by weak relative share performance. The Financial Times World reported that Berkshire's shares beat the S&P 500. For now, the results show weaker profits alongside a faster pace of returning cash through buybacks.