Berkshire's Third Quarter

Saturday, Berkshire Hathaway reported its third quarter. Operating earnings fell 5.8 percent to $12.7 billion. Net earnings fell 28 percent to $22.1 billion. Revenue rose 11 percent to $105.7 billion.

Net earnings swing with stocks Berkshire is not selling, so operating earnings are the better measure. On that measure, the quarter was softer, mostly because insurance underwriting profit fell 43 percent. The number that matters is $9.6 billion. That is what Berkshire spent buying back its own stock, more than in the whole first half. Even after the buybacks, cash hit a record $377 billion.

A quarter is a short time to judge a company built for decades. The businesses earned less. The company still found its own stock worth buying. That is worth more than the headline.