Profit plummets at Buffett’s company on investment gains

By JOSH FUNK
AP Business Writer

OMAHA, Neb. (AP) — Warren Buffett’s company reported a third-quarter profit that was roughly one-third the amount of last year’s profit because of much smaller paper gains on the value of its investments, but most of its businesses were continuing to recover from the effects of the pandemic. Buffett has long said Berkshire’s operating earnings offer a better view of quarterly performance because they exclude investments and derivatives, which can vary widely. By that measure, Berkshire’s operating earnings grew 18% to $6.47 billion. But its insurance businesses recoded a $784 million loss because of catastrophes including Hurricane Ida. Berkshire’s cash crept up to $149.2 billion during the quarter even though Buffett used $7.6 billion to repurchase the company’s shares.