Warren Buffet’s Berkshire Hathaway (BRK.A; BRK.B) swung to a revenue within the second quarter, boosted by its insurance coverage enterprise and funding beneficial properties.
Key Takeaways
- Berkshire Hathaway swung to a revenue of $35.9 billion within the second quarter after dropping $43.6 billion a yr in the past.
- The corporate’s stake in Apple ballooned to $177.6 billion by the tip of the quarter.
- Berkshire added greater than $16 billion to its practically $150 billion money stockpile final quarter.
Berkshire reported internet earnings of $35.9 billion on whole income of $92.5 billion. In the identical interval final yr, the corporate reported a internet lack of $43.6 billion on $76.2 billion in income. Second-quarter earnings have been hamstrung final yr by $66.9 billion in losses on investments and derivatives contracts whereas, this yr, investments contributed $33.1 billion to earnings.
Berkshire reported a 14% improve in income from insurance coverage premiums, serving to raise whole gross sales. The conglomerate’s railroad, utilities, and vitality phase greater than doubled income to $26.9 billion.
Buffett’s 5.8% stake in Apple (AAPL) continues to be the spine of Berkshire’s fairness portfolio. Apple has been a pacesetter of this yr’s market rally, surging 50% within the first half of the yr. That is added $26.6 billion to Buffett’s stake, which on the finish of the quarter totaled $177.6 billion and made up 50% of Berkshire’s fairness investments.
Buffett’s guess on Japanese commodity buying and selling homes additionally paid off within the second quarter as all 5 companies beat net-income estimates for the quarter. Buffett raised his stake within the corporations to a mean of greater than 8.5% in June.
Berkshire continued to develop its huge money stockpile, including $16.7 billion in money and short-term securities within the quarter. Complete money now stands at $147.4 billion.
Class B shares of Buffett’s conglomerate have been up 14% this yr forward of the report and closed on Friday at $349.99, close to their file excessive of $362, reached in March 2022.
