Warren Buffett Friday highlighted his rebound from last year’s poor performance as strong stock markets and derivatives gains helped Berkshire Hathaway, his investment vehicle, triple profits in Q-3 to US$3.24B. Berkshire’s earnings were even higher than Q-3 profits at Goldman Sachs, Wall Street’s most profitable bank and one of Buffett’s holdings, and will provide the billionaire investor with more firepower for acquisitions. Last week, Buffett announced his biggest deal ever, the US$26.4B purchase of Burlington Northern Santa Fe, a giant US railroad operator, and said that he was in the market actively looking deals. After a tough Y 2008 during which Berkshire was hit by the global slowdown and recorded the worst performance since he took over the group in 1965, Warren Buffett has taken advantage of the recovering economy and stabilizing markets. Berkshire’s per-share book value, or total assets minus intangible assets and liabilities, surged 10% in the Q-3 and is up 15.2% from the start of Y 2009, because of a rise in the value of its huge stock holdings. Last year the Birkshire Hathaway’s value declined 9.6%. The company’s class A shares, which tumbled last year as the downturn hit profits, and investors fretted about Mr Buffett’s derivatives contracts, have rebounded 6% this year closing Friday at US$102,400.00/shr. Berkshire’s operating businesses, which range from insurance to jets, had profits of US$2B during Q-3 Y 2009, in line with the previous Q-2.
-Paul A. Ebeling, Jnr. www.livetradingnews.com
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