Berkshire Hathaway Reports Lower Profits and Record $9.6 Billion Buybacks

Berkshire Hathaway's third-quarter results paired a sharp profit decline with a record commitment to buying its own shares. On November 7, CNBC reported that the company had more than doubled its repurchases as both operating and overall profits fell.

The results also offered a look at spending decisions under new chief executive Greg Abel. According to the Financial Times World, Abel was a net seller of stocks during the quarter, while Berkshire's shares beat the S&P 500.

The November 7 coverage put the buyback total at $9.6 billion. Bloomberg described it as a record, making repurchases a central feature of the quarterly results rather than a secondary detail.

The same day, CNN Brasil reported that net profit attributable to shareholders fell 28.2 percent to $22.112 billion, compared with $30.796 billion a year earlier.

Insurance performance was another source of pressure. A November 7 report carried by Top Stories said Geico's numbers worsened as it invested more in advertising.

On November 9, Bloomberg Technology reported that declining insurance underwriting weighed on operating income. It also described the buybacks as a sign that executives viewed Berkshire's stock as undervalued.

That judgment came despite a strong share price. November 9 coverage from Yahoo Finance Business & Economy reported that Berkshire continued repurchasing stock as its shares reached records.

The earnings weakness was not confined to overall profit. CNBC reported declines in both operating and overall earnings, while Bloomberg Technology identified insurance underwriting as a drag on operating income.

The spending picture is more selective than a broad push into stocks. The Financial Times World reported net stock selling under Abel alongside the $9.6 billion in repurchases. Berkshire was buying more of itself while selling more stocks than it bought.

The next results will help show whether record repurchases were a single-quarter decision or the start of a sustained pace under Abel. Insurance underwriting is the other concrete measure to follow, given its contribution to weaker operating income, according to Bloomberg Technology.