Berkshire Hathaway recovers and sees Q3 profits treble

Berkshire Hathaway, the investment group controlled by respected US billionaire investor, Warren Buffett, has recovered from its poor performance in 2008 and announced a surge in net profit.

The group said net profit was $3.2 billion (£1.9 billion) in the three months to September, compared to $1.1 billion in the same period a year earlier.

Seventy-nine year old Buffett is often referred to as the ‘Oracle of Omaha’ and is one of the most successful investors in history. Last year, he was ranked by Forbes as the richest person in the world.

This week, he announced his largest deal to date with a $26.4 billion purchase of Burlington Northern Santa Fe, a US railroad operator.

He said the deal was “an all-in wager on the economic future of the United States”. The third-quarter results do not include that deal.

Meanwhile, stripping out derivative and investment gains, Berkshire’s operating profit in the period was unchanged at $2.06 billion, while revenue was up $2 billion to $29.9 billion compared with a year ago.

After a tough performance last year, in which the company recorded the worst performance since Mr Buffett took the group over more than 40 years ago, he has taken advantage of the recovering economy and stabilising markets.

The company has major investments in companies including Coca-Cola and US banking giant, Goldman Sachs.

On 31 December 31 2008, Class A shares of Berkshire Hathaway were selling for $96,600 - which made them the highest priced shares on the New York Stock Exchange.

Berkshire Hathaway averaged an annual return in excess of 21% to its shareholders from 1965 to 2006.

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