Berkshire reports losses

Berkshire Hathaway, the investment firm run by Warren Buffett, the world’s richest man reported a 77 per cent drop in third-quarter profits, as a $1.01 billion loss on derivatives and other investments combined with sharply reduced results from its operations across the board.

The group announced net earnings of $1.06 billion, it’s fourth straight quarterly decline, down from $4.55 billion the year earlier as so-called operating earnings on its insurance underwriting business plummeted by 83 per cent

Profits on investments made by Berkshire’s insurance unit fell by 12 per cent to $809 million in the third quarter, while the non-insurance businesses it owns contributed a collective profit of $1.08 billion, 7.8 per cent down.

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