In the third quarter of the year, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), the large conglomerate run by legendary investor Warren Buffett, opened a small stake in the investment bank Jefferies Financial Group (NYSE: JEF).

It was the first pure-play investment bank Berkshire has invested in since dumping Goldman Sachs (NYSE: GS) shortly after the pandemic started. However, the small position shows that Buffett and Berkshire still have some reservations about the industry, and perhaps rightfully so.

For its fiscal year 2022, Jefferies generated diluted earnings per share of $3.06, down about 50% from its fiscal year 2021. Should investors be worried? Let's take a look.

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Source Fool.com