Berkshire Hathaway buys back $10 billion in shares as Geico struggles
Berkshire Hathaway repurchased $10 billion of its own shares in the last quarter, continuing its effort to reduce a cash pile of over $300 billion. Earnings from its wholly-owned businesses fell 5% year-over-year, primarily due to volatility in the insurance sector.
Berkshire Hathaway reported that it repurchased $10 billion of its own shares in the last quarter, continuing its effort to reduce a cash pile of over $300 billion. Earnings from its wholly-owned businesses, including insurance and railroads, fell 5% year-over-year, primarily due to volatility in the insurance sector from large claims. A specific concern is Geico, which failed to grow in the last quarter despite increased marketing spend, due to intense competition in the auto insurance market.
The stock has risen 14% year-to-date, benefiting from its status as a safe haven in uncertain times. Separately, U.S. stocks lost $3.2 trillion in value on Thursday, a sum exceeding the total market cap of all listed German companies, though tech stocks stabilized slightly on Friday. Berkshire’s continued buybacks signal confidence in its long-term value, even as short-term earnings face headwinds from the insurance sector. The company’s ability to deploy capital efficiently remains a key factor for investors.