Berkshire Hathaway, billionaire conglomerate Warren Buffett, explained over the weekend that its quarterly profits nearly doubled as its insurance business was very active during the hurricane season.
Warren Buffett's companies have benefited from the US tax cuts.
The strong results gave Buffett more cash flow to continue investing, although he once said he had difficulty finding good deals in the market.
Likewise, it gives you space to buy treasury stock worth almost $ 1 billion, which he held between July and September.
Its operating profit in the third quarter of 2018 doubled to $ 6.880 million from the 3.44 billion expected by Wall Street analysts.
"This is undoubtedly one of the best reports of an American company," said Bill Smead, chief executive officer of Smead Capital Management, a Berkshire shareholder.
Berkshire Hathaway said its net income in the third quarter of this year rose more than 355 percent to $ 18.5 billion, despite a new accounting rule that requires companies to report unrealized investments with profits.
Buffett said such a rule could lead to "capricious" results and may even fool investors, who "should look more closely at operating profits."
Buy your own shares
Berkshire announced the repurchase of $ 928 million of its own shares in the third quarter of 2018.
The company ended September with $ 103.6 billion in cash, short-term US Treasury bonds and other investments.
Warrent Buffett's last major acquisition was in January 2016, when it paid $ 32.1 billion to aircraft parts maker Precision Castparts.
The results of the companies that Berkshire Hathaway manages also improved its rail segments, utilities and financial services.
Berkshire class A shares closed at $ 308,411.01 each, yielding 3.6% this year, slightly more than the S & P 500's 3.4% return.