The Buzz | Berkshire Hathaway’s third-quarter profits decline 11%

Warren Buffett’s company reported yesterday [Macau time] that it saw an 11% decline in third-quarter profits because of a smaller increase in the paper value of its investments, even as it sits on a mountain of cash.
Berkshire Hathaway said it made $16.52 billion, or $10,119 per Class A share, in the quarter, down from $18.54 billion, or $11,280 per Class A share, a year ago.
Buffett has long said Berkshire’s operating earnings offer a better view of quarterly performance because they exclude investments and derivatives, which can vary. By that measure, Berkshire’s operating earnings improved to $7.86 billion, or $4,812 per Class A share, from $6.88 billion, or $4,186.05 per Class A share.
Analysts surveyed by FactSet expected operating earnings per share of $4,299.20 on average.
Berkshire Hathaway recorded an $8.67 billion paper investment gain during the quarter. A year ago, it registered an unrealized $11.66 billion investment gain.
Berkshire’s revenue improved 2% to $64.97 billion.