Buffett’s company earns record profit
07 November 2015, Nirapad News: Warren Buffett’s Berkshire Hathaway recorded its best ever quarterly profit in the third quarter, as earnings were boosted by a one-off $4.4bn gain from the merger of Kraft and Heinz. Net income climbed to a record $9.43bn from $4.62bn a year earlier. Operating earnings, which exclude some investment results, came to $4.55bn for the period, narrowly beating the $4.47bn average estimate of three analysts surveyed by Bloomberg.
Mr Buffett, chairman and chief executive, regularly warns shareholders that investment gains and losses often make for volatile quarterly results. A few of his biggest holdings — including American Express and IBM — have been sliding recently, forcing Berkshire to book unrealised losses.
In August Mr Buffett, 85, struck the largest deal of his life, agreeing to spend $32.5bn on Precision Castparts, an engineering group, in a big bet on US manufacturing. The acquisition of Precision marked a return for Mr Buffett to what he defines as “elephant” deals — eclipsing the $26bn Berkshire paid in 2009 to buy a controlling stake in Burlington Northern Santa Fe.
In May, Berkshire celebrated 50 years under the control of Mr Buffett, who turned a struggling textiles company into the largest conglomerate in the US, with a market capitalisation today of $335bn. – Online agency.