Earnings Season: Berkshire Hathaway Q3 earnings released

Pheww such long awaited and most anticipated company earnings release today: $Berkshire Hathaway(BRK.B)$

Lets dive right in into the key-takeaways:

1. Berkshire Hathaway saw another double-digit increase in its operating profit thanks to a continuous rebound in it railroad, utilities and energy businesses from the pandemic, while the company’s cash pile hit a record high as Warren Buffett continued to sit on the sidelines.
2. Operating income of $6.47 billion in the third quarter, rising 18% from $5.48 billion in the same quarter a year ago.
3. Berkshire said its myriad of businesses has benefited from the economic reopening as demand started to return to pre-pandemic levels. Operating earnings from its railroad, utilities and energy segment grew 11% year over year to $3.03 billion in the third quarter.
4. At the end of September, Berkshire’s cash pile reached a record $149.2 billion, up from $144.1 billion in the second quarter. Buffett hasn’t made a sizable acquisition in the last few years as valuations hit record highs and the deal-making environment turned competitive.
5. The record amount of cash came despite Berkshire’s aggressive share buybacks. The company repurchased $7.6 billion of its own stock in the third quarter, bringing the nine month total to $20.2 billion. Berkshire bought a record $24.7 billion of its own stock last year.
6. Berkshire has reminded investors to not look at EPS as the GAAP accounting includes unrealized gains which makes the net income manipulative and inaccurate. Instead, Warren has informed that investors should look at the operating income.

My Conclusion and opinion on this report:

1. I am soooo Happy that Berkshire Hathaway hit another record quarter despite all the bad previews.
2. The company is doing so well, and I am so confident that Berkshire will be able to beat $Vanguard S&P 500 ETF(VOO)$ over the long run. Berkshire is a compounding machine with its share buybacks.
3. President Biden's 1 Trillion Infrastructure Plan will boost the earnings further as Berkshire is also concentrated in the manufacturing and service field.
4. My DCF valuation model based on the operating income shows the company is trading at fair value currently. Which means, it is currently a good buy to add into your portfolio.

I suggest everyone to get a slice of America by investing into Berkshire. High Quality Earnings, Top Conglomerate, Great management, crazy share buybacks. Truly investors favourite, and the darling stock of America.