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Berkshire profit tops target
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November 10, 2000: 6:31 p.m. ET
Buffett's firm posts 3Q profit gains from both operations and investments
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NEW YORK (CNNfn) - Warren Buffett's Berkshire Hathaway Inc. posted better-than-expected results from operations and also saw a near-doubling of investment income despite the downturn in the market.
The Omaha, Neb.-based company reported earnings from operations of $301 million, or $197 a share. Analysts surveyed by earnings tracker First Call were looking for earnings from operations of $170 a share, up from the $156 million, or $103 a share, it earned a year earlier.
 The company is famous for a relatively low number of shares, which gives it by far the highest share prices and earnings per share of any company.
Income from investment gain, a significant portion of its operations, came to $496 million in the quarter, up from $264 million a year earlier. That brought total net income to $797 million, or $523 a share, up from $420 million, or $276 million a share a year earlier.
The company businesses include everything from insurance to shoes to a Buffalo, N.Y., newspaper. It is in the process of making additional acquisitions including Benjamin Moore & Co. (MBEN: Research, Estimates), the paint company it agreed to buy Wednesday.
Buffett's statement said that the company is being helped by a improvement in reinsurance pricing during the quarter.
"We also expect underwriting results in traditional reinsurance to improve during the next year, excluding any effects from special reinsurance and also absent the occurrence of a mega catastrophe," said a statement from Buffett.
But the company saw disappointing results from its direct auto-insurance provider Geico, and Buffett said it would cut back on its advertising budget for the unit.
"We emphasize that advertising is being reduced because we are not getting our money's worth from the incremental dollars spent rather than to improve profitability, though that will be a result," said Buffett. "We are eager to spend additional sums on advertising when conditions favor this action."
Shares of Berkshire Hathaway (BRK.A: Research, Estimates) were unchanged at $62,200 in trading Friday. Only 680 shares of the thinly traded stock changed hands. 
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Berkshire Hathaway
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