Berkshire buys back $9.6 billion in shares as profit falls

Berkshire Hathaway repurchased $9.6 billion of its own shares in the July-to-September quarter, while operating earnings fell 6% to $12.71 billion as insurance results weakened. The company reported the figures on November 7, in the third quarter since Greg Abel became chief executive.

Berkshire also said it bought back about $2 billion more of its shares in October, following $4.8 billion in repurchases earlier in the year. The company ended September with $356.9 billion in cash and equivalents, down from $380.2 billion at the end of March.

Insurance operating profit fell 26% from a year earlier, and underwriting profit declined 43%. At Geico, pretax profit dropped 45%, with higher accident losses and advertising spending among the factors reported. Berkshire’s operating earnings were $12.71 billion, compared with $13.49 billion a year earlier.

Net income fell 28% to $22.11 billion. That measure includes unrealized gains and losses on investments Berkshire continues to hold; the company has urged investors to look past the resulting fluctuations. Revenue, by contrast, rose 11% to $105.65 billion, despite declines in some consumer businesses.

Results varied across Berkshire’s...