Berkshire Hathaway Q3 Profit Down

Still, he said, investors should be focused on the potential for Berkshire and other insurers to raise prices going forward.The damage at Berkshire's insurance businesses was widespread. Berkshire said that without its investment and derivative gains, which can be volatile, its operating earnings were $3.44 billion, or $1.40 per share.

That missed analysts' average operating profit forecast of $2,402.47 per share, according to Thomson Reuters I/B/E/S.

Edward Jones analyst Jim Shanahan said the insurance losses were larger than he expected.

(2) Berkshire had $109.3 billion in cash as of September 30, 2017.

The company's insurance underwriting business reported an operating loss of $1.44 billion compared to an earnings of $272 million previous year.

Buffett's company generated revenue of $60.53 billion in the period. Insurance investment income rose to $1.04 billion from $850 million a year ago.

Its Class B shares were down $1.27 to $186 in after-hours trading Friday following the release of the earnings report.

Operating earnings breakdown: Insurance underwriting, -$1.44B (vs. a year-ago $272M); Insurance-investment income, $1.04B (up 23%); Railroad, utilities and energy, $2B (up 2.7%); Other businesses, $2.04B (flat).

Berkshire's results also reflected an accounting charge tied to its January agreement to assume many of AIG's policies in exchange for $10.2 billion upfront.

(5) Berkshire apparently added 3 million shares of Apple (Nasdaq:AAPL) (+ $450 million). It also has major investments in such companies as Coca-Cola Co. and Wells Fargo & Co.

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