Buffett's Berkshire tops profit forecasts

Berkshire Hathaway Inc on Saturday said its quarterly operating profit rose more than analysts expected, as growth in several business lines offset the drag from trade tensions and tariffs and billionaire Warren Buffett's inability to deploy the conglomerate's cash. Berkshire benefited as resilience in consumer spending helped cause US economic growth to slow less than expected, offsetting a contraction in business investment.

Berkshire ended September with a record $128.2 billion of cash, despite repurchasing $700 million of stock in the quarter.

Berkshire said third-quarter operating income rose 14% to $7.86 billion, or roughly $4,816 per Class A share, from $6.88 billion, or roughly $4,189 per share, a year earlier.

Analysts on average expected operating profit of $4,405.16 per share, according to Refinitiv IBES. Net income fell 11% to $16.52 billion, or $10,119 per Class A share, from $18.54 billion, or $11,280 per share, reflecting fewer gains from Berkshire's investments.

A US accounting rule requires earnings to reflect unrealized gains, including on Berkshire's respective $57 billion and $27.8 billion stakes in Apple Inc and Bank of America Corp. Buffett said the resulting volatility can mislead investors.