Berkshire Hathaway (BRK.B) closed at $380.12, down 0.5%, after unveiling Q3 2023 results that saw revenue climb 1.2% YoY to $89.2 bn and diluted EPS rise to $3.28—$0.09 above the $3.19 consensus.
The bulk of the growth came from the insurance arm, which added $3.5 bn to its $41 bn base, while the investment holdings posted a $12 bn lift, reflecting a 5% increase in dividend income. The consumer and industrial segments lagged, contributing only $4 bn and $2.5 bn respectively, a modest 1% lift over Q2.
Net profit surged to $4.8 bn, a 12% jump from $4.3 bn expected by analysts and a 15% rise YoY, pushing Berkshire’s net margin to 5.4%, up from 4.8% in Q2. EPS outpaced the $3.19 estimate by $0.09, giving the firm a margin of 3.4% on diluted shares.
Investors noted the company’s continued focus on undervalued assets and disciplined capital allocation—an approach that dovetails with the broader value‑investing trend, which saw the S&P 500 outpace the Nasdaq by 2.9% last quarter. Berkshire’s share of the market remains a bellwether for the sector’s appetite for long‑term, high‑quality businesses.
Looking ahead, Berkshire reaffirmed its 2024 dividend policy, projecting a 5% per‑share increase for BRK.B and confirmed plans to deploy capital into high‑return opportunities. The board will approve a $4 bn buyback in Q4, while the company will report Q4 results on July 30, providing another data point for long‑term investors.