MENU

5 key takeaways from Warren Buffett’s Berkshire Hathaway Q3 results

Warren Buffett’s Berkshire Hathaway Berkshire Hathaway reported its third-quarter results over the weekend.

Here are five key takeaways that could be useful for Australian investors:

1. Berkshire’s finally moving into fintech and emerging markets 

There were reports over the weekend that one of Berkshire’s portfolio managers, Todd Combs, had invested US$600 million in two fintech companies focused on emerging markets. These are Brazilian payment processor StoneCo Ltd which recently listed on the Nasdaq and the parent company of India’s largest mobile-payments service, Paytm.

Whilst Buffett and Berkshire have carved out a reputation as value investors, this latest move is at the sweet spot of high growth trends. Perhaps unsurprisingly, payments companies tend to have wide moats which would attract Berkshire.

2. Berkshire bought back almost US$ 1 billion of its own shares

This was the first time Berkshire had bought back its own shares since December 2012. Perhaps it’s an indicator that Buffett and his partner Charlie Munger think that the Berkshire Hathaway share price is undervalued or that there just aren’t any better alternatives out there.

3. Berkshire’s pristine balance sheet keeps getting better

Berkshire’s balance sheet certainly won’t keep investors up worried at night. The company had cash of US$36.5 billion, investments in short-term treasury bills of US$60 billion, fixed securities of US$18 billion and equity investments of over US$200 billion. That’s before including other investments such as the US$17 billion Kraft Heinz company.

4. Berkshire made US$18.5 billion in Q3 profits 

A US$18.5 billion profit in just 3 months of operations is phenomenal and the result was boosted by lower insurance liabilities, lower taxes and higher investment gains.

5. Berkshire made almost US$ 1.4 billion from its deal with IAG 

Through its subsidiary Nico Group, Berkshire made US$1.4 billion in premiums earned in the nine months to 30 September from its deal with Insurance Australia Group Ltd (ASX: IAG). The deal is a 10-year, 20% quota share contract that expires in 2025.

Warren Buffett is not the only billionaire that seems to be getting richer, this Japanese billionaire is investing billions into this new technology.

Japanese Billionaire’s Prediction Will Give You Goosebumps

When a veritable investing and entrepreneurial genius speaks, it pays to listen.

In fact, he's now preparing a $100B "war chest" to invest entirely in this "terrifying" new technology, which could spell huge profits for investors.

Click here to learn about this technology and how you can profit!

Kevin Gandiya owns shares in Berkshire Hathaway (B shares).

You can find Kevin on Twitter @KevinGandiya.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!