Buffett’s “Stock God” Berkshire Hathaway (Berkshire Hathaway) will announce its third quarter earnings on Saturday (5th). Ian) and other natural disasters, corporate losses are expected to attract more attention from investors.
Analysts expect Berkshire’s A-share earnings per share in the third quarter to drop about 2% to $ 4,205, with after-tax operating benefits of about $ 30 billion, but as Buffett has long pointed out to shareholders that focus on long-term earnings trends, he estimates This is not the most worrying issue for investors.
own actions
Berkshire slowed the pace of its own stock purchases this year, repurchasing $ 3 billion in the first quarter and just $ 1 billion in the second, down from an average of around $ 7 billion per quarter in 2021.
Edward Jones analyst James Shanahan expects Berkshire to buy back $ 3 billion in the third quarter and more than $ 4 billion would be seen as a big advantage for Berkshire’s shares.
Changes in individual equity investment
Berkshire aggressively bought stock in the first quarter, buying over $ 40 billion in net shares, nearly half of which in Chevron (CVX-USA), the growth rate slowed to $ 4 billion in the second quarter, and given the weakness of the stock market in the third quarter, investors will pay attention to the 10-Q (quarterly report) released alongside the earnings report to see if the Berkshire is aggressive apple overweight (AAPL-USA) or single stocks like Chevron.
Hurricane Ian and other natural disaster losses
The Berkshire business covers insurance, railways, utilities, energy and other fields, of which the insurance business is the largest segment of Berkshire’s revenue, including auto insurance giant Geico. The outside world is concerned that “Hurricane Ian”, which has the “hurricane of the century”, has hit Florida and other places with Category 4 hurricane intensity since late September and Berkshire underwriting earnings. they could suffer a loss of $ 3 billion.
United States Director-General of Health
One of the “four pillars” of Berkshire’s business is the Burlington Northern Santa Fe Railroad (BNSF), one of the largest railroad companies in the United States, Shanahan said: the US economy. “
Western oil
Berkshire has increased its holdings in Occidental since the beginning of the year (OXY-US), holding approximately 20% of the shares, Berkshire can recognize Occidental Petroleum’s profit share in the cash flow statement, or using the equity method. It is unclear whether Occidental’s profit will be included in Berkshire’s earnings, as Occidental won’t report its latest earnings until next Tuesday.
