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Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) is set to report its third-quarter earnings on Saturday morning. Here are some things investors will be watching out for.

Berkshire Hathaway’s cash pile swelled to a record $277 billion in the second quarter, up nearly $100 billion from the prior quarter. The majority of that money, roughly $235 billion, was invested in U.S. Treasurys.

Investors will be looking at this upcoming earnings report for any clues about how Berkshire plans to use or invest its massive war chest. Will Buffett unveil new positions or will the company use the money to buy back shares as it has in the past?

Buffett said early this year that there were "only a handful of companies" in the U.S. that aligned with the firm's value-minded acquisition and investment strategy. The firm has since substantially trimmed a few major equity holdings.

CFRA’s Berkshire analyst Catherine Seifert expects the company to pursue “transactions as it deploys part of its $277B cash hoard (as of June 30, 2024) amid a declining interest rate environment.”

Though cut in half this year, Apple Inc. (AAPL) likely remained Berkshire’s largest equity position in the third quarter while Buffett continued to sell one of his long-favored stocks—Bank of America (BAC.)

Berkshire trimmed its Bank of America position by about 20% to 800 million shares in the third quarter, according to filings with the Securities and Exchange Commission. And it has since sold more stock. Those sales have shrunk Berkshire's stake in the bank to less than 10%, meaning the firm is no longer required to promptly disclose changes to its position.

Buffett reportedly enjoys listening to Frank Sinatra on Channel 70 on Sirius XM. And like many of his other investments in products that he enjoys, like Coca-Cola (KO), he’s betting on Sirius XM as well. 

In September, Sirius XM and Liberty Media, which owned tracking shares of Sirius XM, underwent a complicated split-off transaction to create one new entity. Berkshire, which previously owned both Sirius XM as well as the tracking shares, ended up with roughly 105 million shares in the new Sirius XM entity (SIRI). It upped its stake in October, to over 108 million shares, accounting for more than a third of all outstanding shares in the satellite radio provider.

Investors will be curious to see if Buffett changed some of his other significant holdings in the quarter. He unveiled new stakes in beauty products company Ulta Beauty (ULTA) and aerospace and electronics manufacturing company Heico Corp. (HEI) during the second quarter.

Buffett has time and again expressed his dislike for traditional earnings metrics, choosing instead to look at operating income to appropriately capture the state of Berkshire’s businesses. 

In the second quarter, operating income increased to $11.6 billion, driven primarily by underwriting and investments in its insurance businesses. The insurance business thrived as claims and catastrophe-related costs scaled back.

The size of claims and catastrophe-related losses, and the outlook for the insurance business, will be in focus on Saturday, especially with several major hurricanes having hit the Southeast in recent months.

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Inspector-General of Police Kayode Egbetokun has claimed that six suspects who fainted in court before their arraignment on Friday, November 1, did so intentionally to draw negative attention.

However, he said that medical help was given right away, highlighting the police’s dedication to the welfare of those in custody.

In a statement on Friday, he said: “Today, an unexpected incident in court saw six of the suspects suddenly rush out and faint, drawing media attention in a deliberate and scripted manner to attract negative attention.

Medical aid was promptly provided to these individuals, demonstrating the Police Force’s commitment to the welfare of those in its custody, irrespective of the allegations they face.

While committed to upholding justice, the Nigeria Police Force remains sensitive to the rights of all individuals, including young persons. Under Nigerian law, individuals who have reached the age of criminal responsibility are answerable for their actions, regardless of their age.

This principle aligns with global practices, where accountability is upheld for young individuals who commit serious offences. As seen in other jurisdictions, including the United Kingdom, age does not exempt individuals from facing legal consequences. However, each case is approached with empathy and in accordance with human rights standards.”

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U.S. equities kicked off the new month with solid gains at midday, with the tech sector getting a boost from Amazon's (AMZN) strong earnings news. A weaker-than-expected jobs report also raised optimism about future Federal Reserve rate cuts. The Dow Jones Industrial Average, S&P 500, and Nasdaq all were up about 1%.

Amazon exceeded profit and sales estimates as its cloud and advertising revenue grew.

Charter Communications (CHTR) shares jumped after the cable TV, mobile, and internet services provider posted better-than-anticipated results as it lost fewer subscribers than anticipated.

Shares of Atlassian (TEAM) soared when the provider of software and services for developers and project managers also reported results that beat forecasts and raised its guidance on surging subscriptions driven by demand for artificial intelligence (AI) technology.

Apple (AAPL) shares fell as the iPhone maker’s sales in China slowed.

Shares of Wayfair (W) slumped after the online home furnishing retailer lost customers, and total orders and orders from repeat customers declined.

Amcor (AMCR) shares dropped when the global packaging firm missed earnings and revenue estimates on unfavorable price/mix and foreign exchange rates. 

Oil and gold futures rose. The yield on the 10-year Treasury note gained. The U.S. dollar was up on the euro and yen, but lost ground to the pound. Prices for most major cryptocurrencies were lower.

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Charter Communications (CHTR) shares surged Friday after the cable TV, mobile, and internet services provider reported better-than-anticipated results as it lost fewer subscribers than expected.

The Spectrum parent posted third-quarter earnings per share (EPS) of $8.82, with revenue up 1.6% to $13.8 billion. Both figures were above analysts' forecasts compiled by Visible Alpha.

Charter's internet customers declined by 110,000 to 30.3 million, and video customers slid 294,000 to 13.2 million. Analysts surveyed by Visible Alpha were looking for 30.1 million and 12.9 million, respectively. 

The communications giant also posted a big jump in mobile customers, as those using Charter’s mobile lines jumped 26% to 9.4 million, more than anticipated.

Charter shares were up about 13% in intraday trading Friday, though even with Friday's gains, they've lost close to 5% of their value since the start of the year.

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President Bola Tinubu says the tax reform bills will not be withdrawn from the national assembly as recommended by the national economic council (NEC).

During the 144th NEC meeting led by Vice President Kashim Shettima, the council advised that the bills be retracted.

This recommendation followed a meeting in Kaduna where governors from the 19 northern states and key traditional leaders from the region decided to reject the Nigeria Tax Reform Bill, among other issues.

On October 3, Tinubu asked the national assembly to consider and pass four tax reform bills. The bills include the Nigeria tax bill, the tax administration bill, and the joint revenue board establishment bill.

Tinubu is also seeking to repeal the law establishing the Federal Inland Revenue Service (FIRS) and replace it with the Nigeria Revenue Service.

In a statement on Friday, Bayo Onanuga, special adviser to the president on information and strategy, said Tinubu received NEC’s recommendation, however, the president said the legislative process should continue.

“President Tinubu commends the National Economic Council members, especially Vice President Kashim Shettima and the 36 State Governors, for their advice.

He believes that the legislative process, which has already begun, provides an opportunity for inputs and necessary changes without withdrawing the bills from the National Assembly. [SWIPE]

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