Operating Profit Sets Record, Buffett's Berkshire Posts Bigger Loss as Stocks Fall

Minggu, 05 November 2023 | 08:11 WIB
 Operating Profit Sets Record, Buffett's Berkshire Posts Bigger Loss as Stocks Fall
[ILUSTRASI. FILE PHOTO: Berkshire Hathaway shareholders walk by a video screen at the company's annual meeting in Omaha, Nebraska, U.S., May 4, 2013. REUTERS/Rick Wilking/File Photo]
Reporter: Sumber: Reuters | Editor: Syamsul Azhar

KONTAN.CO.ID - JAKARTA. Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted its first quarterly loss in a year as the prices of Apple AAPL.O and other stocks it owns fell, but said improved results from insurance helped boost operating profit to a record.

Rising interest rates boosted yields in the third quarter on Berkshire's vast U.S. Treasury bill holdings above 5%, while fewer car accidents and a quiet Atlantic hurricane season bolstered the Geico car insurer and reinsurance businesses.

Operating profit rose 41% to $10.76 billion, even as Berkshire's net loss more than quadrupled to $12.77 billion.

Berkshire also signaled it remains cautious about stock valuations and the market environment.

Baca Juga: Warren Buffett Tak Ragu Pecat Karyawan, Mengapa Begitu?

The Omaha, Nebraska-based conglomerate's cash stake swelled to a record $157.2 billion, enough for one or more large acquisitions, as Berkshire sold $5.3 billion more stocks than it bought and slowed repurchases of its own stock to $1.1 billion.

Berkshire also reported signs of caution among consumers, where confidence has been declining amid inflation worries, higher borrowing costs, and political instability.

Its BNSF railroad shipped fewer consumer goods, while lower homebuying hurt its namesake real estate brokerage and building products units such as Clayton Homes. Sales of Forest River RVs and Fruit of the Loom apparel also came under pressure.

Jim Shanahan, an Edward Jones analyst who rates Berkshire "hold," said overall results were "pretty good" and exceeded his expectations, though the new "softness" in consumer businesses could persist for several quarters.

Many consumer companies are experiencing higher input costs and "tepid" demand, said Cathy Seifert, a CFRA Research analyst who on Oct. 31 raised her Berkshire rating to "buy."

"Against that backdrop, it's not surprising that Berkshire's consumer and housing-related subsidiaries are seeing pressure," she said.

Jazwares, a toymaker that makes the popular Squishmallows and which Berkshire bought one year ago, helped offset some of the weakness, generating $469 million of revenue in the quarter.

Baca Juga: Rumus Pensiun ala Warren Buffett, Bisa untuk Siapkan Tabungan Hari Tua

CASH IS NOT TRASH

Investors watch Berkshire closely because its results often reflect broader economic trends, and because of the 93-year-old Buffett's reputation as one of the world's greatest investors.

Many investors extol Berkshire's caution in spending cash even as they wait for Buffett to make a major acquisition.

"Berkshire is disciplined," said Tom Russo, a partner at Gardner Russo & Quinn in Lancaster, Pennsylvania who has owned Berkshire stock since 1982. "It is not demonstrating a 'fear of missing out' by trading and buying businesses whose appeal may eventually appear illusory."

Buffett himself has preached patience. "Cash is not trash," he said at Berkshire's annual meeting in May.

Berkshire's $12.77 billion overall loss equaled $8,824 per Class A share and rose from $2.8 billion a year earlier.

Its $10.76 billion of operating profit equaled $7,444 per Class A share and was up from $7.65 billion a year earlier.

Overall results included $23.5 billion of investment losses, primarily reflecting a 12% decline in the stock price of iPhone maker Apple, where Berkshire had owned a $177.6 billion stake.

Berkshire's net results swing widely because accounting rules require the company to report investment gains and losses even if it buys and sells nothing.

Buffett says the volatility is usually meaningless, and Berkshire appears to have kept its Apple stake.

Insurance operations generated $4.89 billion of profit, up from just $336 million a year earlier, when it lost $2.7 billion from Hurricane Ian alone.

Geico swung to a $1.05 billion pre-tax profit from a $759 million pre-tax loss as fewer drivers submitted claims, even though significantly reduced advertising contributed to a 13% drop in overall policies.

Shanahan said some insurers are resisting new business in larger states such as California, Florida, New Jersey, and New York because premiums may be too low.

"The question is whether Geico is positioned for growth given the retrenchment in policies-in-force," he said.

PACIFICORP, PILOT

BNSF, which often generates one-fifth of Berkshire's operating profit, saw net income fall 15% to $1.22 billion.

Profit from energy businesses slid 69% to $498 million, as the PacifiCorp utility forecast more losses from litigation over wildfires in the western United States.

Berkshire would not predict the impact of an Oct. 31 jury verdict awarding home sellers $1.78 billion over an alleged illegal antitrust conspiracy among several defendants, including its HomeServices of America unit, to inflate broker commissions.

The Pilot truck stop unit, in which Berkshire took an 80% stake in January, added $183 million of profit. Its founders, the billionaire Haslam family, are suing Berkshire over how much the 20% they still own would be worth if they sold it.

Berkshire also said geopolitical risks remain a concern, though its IMC metalworking unit, which makes many products in Israel, has not seen significant effects from the war between that country and Hamas.

Buffett has run Berkshire since 1965. His $117.5 billion net worth ranks fifth worldwide according to Forbes magazine.

Berkshire shares are up 14% this year, matching the Standard & Poor's 500.SPX.

Bagikan

Berita Terkait

Berita Terbaru

Tarif Impor Tembaga AS Naik 50%, AMMN hingga MDKA Diproyeksi Diuntungkan Meski Sesaat
| Rabu, 09 Juli 2025 | 22:15 WIB

Tarif Impor Tembaga AS Naik 50%, AMMN hingga MDKA Diproyeksi Diuntungkan Meski Sesaat

Kelebihan pasokan di pasar global akibat kebijakan tarif impor Trump pada akhirnya malah bisa menekan harga tembaga.

Meski Investor Asing Jor-joran Jualan, Harga ADRO Relatif Anteng Berkat Buyback Saham
| Rabu, 09 Juli 2025 | 21:07 WIB

Meski Investor Asing Jor-joran Jualan, Harga ADRO Relatif Anteng Berkat Buyback Saham

Dalam beberapa bulan terakhir banyak investor institusi asing yang melego saham ADRO dengan volume yang cukup besar.

Saham CDIA bisa Serupa BREN & CUAN, Minat Pasar Besar tapi Berpotensi Diganjal BEI
| Rabu, 09 Juli 2025 | 16:44 WIB

Saham CDIA bisa Serupa BREN & CUAN, Minat Pasar Besar tapi Berpotensi Diganjal BEI

Saham-saham pendatang baru yang terafiliasi dengan Prajogo Pangestu selalu diburu pelaku pasar sehingga bisa ARA berhari-hari usai listing.

Ekspektasi Konsumen dan CEO Sama-Sama Rendah
| Rabu, 09 Juli 2025 | 11:57 WIB

Ekspektasi Konsumen dan CEO Sama-Sama Rendah

Indeks Keyakinan Konsumen (IKK) periode Juni 2025 mencapai 117,8, naik dari 117,5 tetapi masih bergerak di sekitar level terendah dalam 3 tahun. 

Akses Pendanaan ke Bank Terbatas, Fenomena Gagal Bayar Korporasi ke Pinjol Kian Naik
| Rabu, 09 Juli 2025 | 09:30 WIB

Akses Pendanaan ke Bank Terbatas, Fenomena Gagal Bayar Korporasi ke Pinjol Kian Naik

Terjadi kenaikan proporsi pinjaman daring ke perusahaan non-UMKM dibandingkan UMKM di pertengahan tahun lalu hingga Februari 2025.

Profit 25,13% Setahun, Harga Emas Antam Hari Ini Melemah Lagi (9 Juli 2025)
| Rabu, 09 Juli 2025 | 08:51 WIB

Profit 25,13% Setahun, Harga Emas Antam Hari Ini Melemah Lagi (9 Juli 2025)

Harga emas batangan Antam 24 karat hari ini 8 Juli 2025) di Logammulia.com tertera Rp 1.894.000 per gram.

Pertamina Patra Niaga Merombak Jajaran Direksi
| Rabu, 09 Juli 2025 | 06:57 WIB

Pertamina Patra Niaga Merombak Jajaran Direksi

Menurut Heppy, Pertamina Patra Niaga mendukung dan comply pada kebijakan dan keputusan pemegang saham.

Opsi Penunjukan Langsung Pengelola Blok Migas
| Rabu, 09 Juli 2025 | 06:53 WIB

Opsi Penunjukan Langsung Pengelola Blok Migas

Opsi penunjukan langsung WK migas ini disampaikan Wakil Menteri ESDM Yuliot Tanjung saat mengungkapkan urgensi revisi UU  Migas.

TINS dan PTBA Siap Ikuti Aturan Baru
| Rabu, 09 Juli 2025 | 06:47 WIB

TINS dan PTBA Siap Ikuti Aturan Baru

Enteri ESDM Bahlil Lahadalia menyatakan, skema tahunan lebih relevan dalam merespons fluktuasi harga dan permintaan pasar global

 Pengusaha Batubara Tolak Pungutan Bea Keluar
| Rabu, 09 Juli 2025 | 06:42 WIB

Pengusaha Batubara Tolak Pungutan Bea Keluar

Rencana pemerintah mengenakan bea keluar semakin membebani pelaku industri batubara yang sudah banyak menanggung sejumlah pungutan

INDEKS BERITA

Terpopuler