Berkshire Profit Surges 64 Percent

Berkshire Hathaway Inc., controlled by billionaire Warren Buffett disclosed Friday that its third-quarter profit surged 64 percent, driven primarily by investment gains, including the sale of a stake in PetroChina .

In a regulatory filing, the Omaha based company disclosed that net income for the company rose to $4.55 billion from $2.77 billion in the period a year earlier. Investment gains increased more than tenfold to $1.99 billion after taxes. Revenue rose 18 percent, to $29.94 billion.

Pre-tax underwriting gains at Geico Corp fell 18 percent to $335 million. Within the reinsurance group, underwriting gains fell 75 percent to $183 million. Net income from utilities and energy rose 36 percent to $354 million and from manufacturing and retailing businesses rose 21 percent to $647 million. Currencies generated a $26 million gain.

Frank Betz of Carret Zane Capital Management, New Jersey said, "I don't think anybody's ever made much money betting against Warren Buffett and Berkshire Hathaway. His investment in China was the big brass ring that he grabbed in this period."

Berkshire Hathaway is a conglomerate holding company that oversees and manages a number of subsidiary companies. Its core business is insurance, including property and casualty insurance, reinsurance and specialty nonstandard insurance. Berkshire now owns a diverse range of businesses ranging from footwear to jewelry to home furnishings. The company typically gets about half its profit from insurance

The man behind the success of the company is Warren Buffett who transformed Berkshire from a failing textile maker into a conglomerate. Berkshire’ stupendous results, which also include ending the quarter with $47.08 billion in cash, will enable Mr. Buffett fulfill his big acquisition plans. Last month, the business tycoon had said, "I'm looking all over the world."

Critics had earlier linked PetroChina, the listed arm of China National Petroleum Corporation, mainland China's biggest producer of oil, to the genocide in the Darfur region of Sudan. They had called on Buffett to sell his stake in the Chinese oil company. Mr Warren however claims that he sold PetroChina solely on its valuation.

Shares of Berkshire Class A closed up $1,250 at $132,500, and its Class B shares rose $25.