Berkshire Hathaway, the Omaha conglomerate Warren Buffett built, reported a 28% fall in quarterly net income, the least informative number in its results. Since 2018, US accounting rules have forced unrealised swings in its share portfolio through the profit line, so Buffett has urged shareholders to ignore it and watch what the company does with its cash.

Berkshire’s policy allows repurchases only when its board judges the shares worth more than their price, so each purchase by Greg Abel, who replaced Buffett as chief executive on 1 January, is a public valuation of the business. His alternatives are weak: Berkshire held a record $382bn in cash and Treasury bills in September, and any fall in US short-term interest rates cuts what that cash earns.

The board loosened that test in July 2018, dropping a cap of 120% of book value, the accounting net worth, and leaving the call to Buffett and Charlie Munger, according to Berkshire’s announcement.

The Gist AI Editor

Berkshire Hathaway profits fall as buybacks rise

Berkshire Hathaway’s quarterly net income fell 28% because investment gains shrank and its insurance units earned less (WSJ). The FT reported that operating income, which counts only earnings from the businesses themselves and leaves out swings in investment values, fell 5.8% year on year. The conglomerate also stepped up share buybacks, with $9.6bn of purchases (FT).

New Zealand’s conservatives lead a close election

Prime Minister Christopher Luxon and his allies hold a narrow lead, but late ballots are still being counted. The WSJ reports this means weeks of uncertainty before it is clear whether his coalition can govern.

Turkey’s fund probe reaches the former markets regulator

Turkish authorities arrested the former deputy chairman of the country’s markets regulator, state-run Anadolu Agency reported on Saturday (Bloomberg). He is the latest executive caught up in a widening fund scandal.

Protein demand draws billions into livestock health

Animal health companies are investing billions of dollars in businesses that keep cattle, pigs and poultry healthier for human consumption, as demand for protein grows (Bloomberg).

Younger travelers turn to cruises

Higher airfare and hotel costs are making all-inclusive vacations more appealing to Gen Z and millennial travelers, Bloomberg reports. Cruise lines are courting them with mega ships, adult-only spaces and nostalgia, and some sailings cost about $30 a day.

Stay tuned for the next Gist, your edge in a shifting world. The Gist remains independent and reader-supported. If you value news free from corporate or state interests, consider supporting our mission with a donation.

New Zealand’s Conservatives Narrowly Lead in Election
— Wall Street Journal

Protein Craze Fuels an Investment Boom in Livestock Health
— Bloomberg

Turkey Arrests Former Regulatory Executive in Growing Fund Probe
— Bloomberg

Young Travelers Are Warming Up to Cruises
— Bloomberg

The Best Cat Water Fountains of 2026: Petlibro, Petkit, Oneisall
— Wired

Berkshire Hathaway’s Quarterly Profit Falls After Investment Gains Shrink
— Wall Street Journal

Pistorius says Germany’s army can fill its ranks without conscription

Germany’s defence minister Boris Pistorius (SPD) said on 7 November that the Bundeswehr can meet its personnel needs without reintroducing compulsory service, provided volunteers keep signing up at the current pace (ZDF). The army currently has about 190,000 soldiers, and Pistorius credited the measures in the new Military Service Modernisation Act, which he says are working (ZDF).

German firms raise price plans as energy costs climb

The ifo institute’s price expectations index, which measures the share of German companies planning to raise prices, rose to 25.9 points in October, from 23.0 in September (ifo). Crude oil and gas prices reached their highest level since 2022 in the second half of October, according to ifo’s business-cycle chief Timo Wollmershäuser, who expects both producer and consumer inflation to keep rising (ifo). In September, ifo had already projected inflation above 3% in the coming months, after the blockade of the Bab al-Mandab strait pushed crude higher. It also expected utilities to raise electricity and gas prices over the winter (ifo).

Zelensky promises more dismissals at Ukraine’s domestic intelligence service

Ukrainian President Volodymyr Zelensky announced further personnel changes at the SBU, the country’s domestic intelligence service, after anti-corruption bodies charged several senior security and justice officials this week (ZDF). The officials are accused of protecting a criminal ring. Zelensky called the alleged crimes “absolutely unacceptable” and said some dismissals had already taken place. He also said he expects a full investigation with concrete results (ZDF).

Bundestag vice-president describes cross-party approach to AfD provocations

Bodo Ramelow (Die Linke), a vice-president of the German Bundestag, said the chamber’s presiding body works across party lines, including during night sessions, and uses a deliberate strategy to respond to provocations from the AfD (Politico). He also criticised what he called tactical manoeuvring by some members of his own party over its antisemitism debate (Politico).

Catch the next Gist for the continent’s moving pieces.

Wehrpflicht: Pistorius sieht derzeit keinen Bedarf
— ZDF

Höhere Energiepreise werden zunehmend weitergegeben
— IFO

Kräftig gestiegene Energiepreise sorgen weiterhin für Preisdruck
— IFO

Carla Shatz, neuroscientifique : « La notion que le cerveau est déjà plastique in utero, bien avant la naissance, a été déterminante »
— Le monde

Jean Pisani-Ferry : « La Chine manque d’une stratégie macroéconomique de nature à corriger ses déséquilibres persistants »
— Le monde

Bayern bezahlt hohen Preis für Sieg in Mainz
— ZDF