Warren Buffett is buying back his stock at a record pace

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Impact of the virus

COVID-19 continued to put pressure on Berkshire’s operations. For his insurers, it was not just pandemic-related claims, but also non-payment of premiums by customers and higher operating costs with missing personnel. Operations such as the railway have also been affected by the ripple effects of the virus and blockades.

However, Berkshire said that many of its manufacturing, services and retail businesses experienced significant increases in profits in the third quarter compared to the previous three months, when “they fell significantly”.

Berkshire businesses, such as aerospace component maker Precision Castparts, have had to lay off or cut workers this year as the virus has gripped the nation. Buffett’s company warned in its third quarter report that some companies may need to continue to restructure.

“Some of our businesses are undertaking and likely will continue to undertake restructuring activities that will scale their operations to better meet expected customer demand,” Berkshire said in the statement Saturday.

Cash

Despite Berkshire’s record buybacks and equity investments, the conglomerate’s liquidity was only slightly below its second-quarter record. Berkshire held approximately $ 145.7 billion in cash at the end of the third quarter, down less than $ 1 billion from the end of June.

Berkshire recently expanded its hunting horizons, with its $ 6 billion bet on Japanese trading companies and even a stake in the newly formed Snowflake Inc.