The Strategist

Buffett's company holds record $ 9B-worth buyback


11/09/2020 - 03:21



Warren Buffett’s Berkshire Hathaway bought back its shares in the third quarter for a record $9 billion. This move was due to the negative impact of the coronavirus on companies owned by the investment company.



QuoteInspector.com
QuoteInspector.com
Berkshire Hathaway, an investment holding managed by billionaire Warren Buffett ($79 billion, according to Forbes Real-Time), bought back its own shares for $9 billion in the third quarter of 2020, according to the company's financial report. 

This is a record buyback for Berkshire Hathaway, writes CNBC. It is almost twice the amount that the company spent to buy its shares in the second quarter ($5.1 billion). Thus, in 2020 Buffet’s investment holding purchased its shares for $ 15.7 billion, the channel notes.

Berkshire Hathaway bought back its Class A shares for $2.5 billion and Class B shares for $6.7 billion. As CNBC notes, the company took this step because of the coronavirus pandemic. The crisis caused by the epidemic has had a direct impact on the companies owned by the holding, which include railways, insurance companies and utility providers.

According to the report, Berkshire Hathaway's operating profit in the third quarter decreased by 30% year-on-year to $5.5 billion, while net profit increased by 82% year-on-year to $30.1 billion. According to CNBC, the company's net profit growth is largely due to investments in Apple, which increased by 26% in the third quarter.

source: cnbc.com




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