Berkshire Hathaway Reports Strong Second-Quarter Earnings and Cash Hoard of Nearly $150 Billion
OMAHA – Berkshire Hathaway, the Omaha-based conglomerate headed by billionaire investor Warren Buffett, has announced its second-quarter financial results, showcasing solid operating earnings and a substantial cash hoard nearing $150 billion.
The company’s operating earnings for the last quarter totaled $10.043 billion, a 6.6% increase compared to the same period last year. This growth in operating earnings can be attributed to the success of Berkshire’s various businesses, including insurance, railroads, and utilities.
Additionally, net income for the quarter amounted to $35.91 billion, a significant improvement compared to the $43.62 billion loss suffered during the second quarter of the previous year. Berkshire’s robust results were primarily bolstered by a surge in insurance underwriting and investment income.
One of Berkshire Hathaway’s most notable gains came from its investments, particularly its significant stake in tech giant Apple. The conglomerate reported an unrealized gain of nearly $26 billion from its investments, with Apple’s soaring performance during the second quarter contributing to Berkshire’s bet ballooning to $177.6 billion.
Despite its success, Berkshire made a strategic move to trim its stake in energy company Chevron by $1.4 billion to $19.4 billion. Chevron shares have underperformed the broader market this year, declining by more than 11%, while the S&P 500 has experienced a rally of almost 17% in 2023.
Notably, Berkshire’s cash pile grew to $147.377 billion at the end of June, which is close to a record high and significantly higher than the $130.616 billion reported in the first quarter. This large cash reserve has positioned the conglomerate to potentially capitalize on investment opportunities and strategic acquisitions.
Moreover, Berkshire’s share repurchase activity slowed down as the company’s stock price reached record highs. The conglomerate spent approximately $1.4 billion on buybacks during the quarter, bringing the year-to-date total to $5.8 billion.
Berkshire Hathaway’s Class A shares hit a new record close of $541,000 on Thursday, surpassing the previous high of $539,180 achieved on March 22, 2022. With a 13.8% year-to-date increase, the conglomerate’s stock continues to perform well.
As Berkshire Hathaway maintains its strong financial position, investors and industry experts eagerly await Warren Buffett’s next investment moves and the potential impact on the conglomerate’s performance.