Earnings: Buffett's Berkshire Hathaway Says Net Income Tripled - Companies * US * News * Story

Runway Angels
The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Fashion Show.
The Richest Members of the US Congress
Recently, the Center for Responsive Politics found that there are 237 millionaires in the US Congress.
10 Tips to Get Out of Debt
Renowned financial author Gail Vaz-Oxlade takes a tough-love approach to helping couples in a financial crisis to face reality.

FEATURED QUIZZES

How Much Do You Know About Green?
Green has become part of our everyday lives. Green is everywhere-- energy, clothing, food, housing, transportation. It's a big business and a global business.
The Billionaire BFF's
Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?
The Many Myths of Coca-Cola
Can you tell which statements are true, and which ones are just rumors?

SPECIAL REPORTS

Winterizing Your Portfolio
If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.
Investor's Guide to Real Estate
Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.
Alternative Investing
Stocks and bonds? Sure. But it's a big world out there for investors.

CNBC ON DIGG

Buffett's Berkshire Hathaway Says Net Income Tripled

Published: Friday, 6 Nov 2009 | 5:49 PM ET

Text Size

By: Reuters

Warren Buffett's Berkshire Hathaway Friday said third quarter net income tripled, as rising stock markets boosted its investment holdings and a quiet hurricane season contributed to higher insurance profit.

Warren Buffett
CNBC.com
Warren Buffett

Results were announced three days after Buffett revealed the biggest acquisition in his 44 years running Berkshire, a $26 billion takeover of Burlington Northern Santa Fe [BNI Loading... () ]. Berkshire had already owned 23 percent of the nation's second-largest railroad operator.

Third-quarter net income for Omaha, Nebraska-based Berkshire rose to $3.24 billion, or $2,087 per Class A share, from $1.06 billion, or $682, a year earlier.

Excluding investments, operating profit fell less than 1 percent to $2.06 billion, or $1,325 per share, from $2.07 billion, or $1,335. On that basis, analysts expected profit of $1,308.25 per share, according to Thomson Reuters I/B/E/S.

Revenue rose 7 percent to $29.9 billion.

Berkshire benefited as rising stock markets boosted the value of its investments in companies such as Coca-Cola [KO Loading... () ], Goldman Sachs [GS Loading... () ] and Wells Fargo [WFC Loading... () ].

RELATED LINKS

Results included $1.13 billion of derivatives gains, mainly from contracts related to junk bond credit quality and to a lesser extent from the performance of four stock market indexes in the United States, Europe and Japan.

Rising stocks helped boost Berkshire's book value to $126.07 billion, or $81,247 per share, up 10 percent from three months earlier and 15 percent from year end.

Buffett often touts book value, which reflects assets minus liabilities, as a good gauge of Berkshire's health.

Insurance, which typically generates half of Berkshire's results, benefited from the quietest Atlantic hurricane season in more than a decade. Only a single named storm, Claudette, made U.S. landfall.

Class A shares of Berkshire closed Friday up $500 at $102,400 [BRKA Loading... () ], while Class B shares rose $30 to $3,425 [BRKB Loading... () ]. Both are about one-third below their record highs set in Dec. 2007.