Warren Buffett's Berkshire Hathaway, Inc. BRK BRK reported Saturday second-quarter results that showed a modest increase in operating income. The firm’s investment income also reversed to a gain from a loss a year ago, thanks to the equity market rally seen in the quarter.
What Happened: Omaha, Nebraska-based Berkshire Hathaway, an investment holding company, said its third-quarter operating earnings came in at $10.04 billion, higher than last year's $9.42 billion in earnings. Operating earnings are derived from the companies Berkshire owns.
The increase in the operating income reflected an increase in insurance underwriting income from $715 million to $1.25 billion. The insurance investment income also climbed from $1.91 billion to $2.37 billion.
On the other hand, the firm’s income from rail transportation company BNSF fell and its energy-company earnings remained flat.
Berkshire Hathaway’s investment and derivative gains were $25.87 billion compared to a loss of $53.04 billion. The strong performance reflected investment gains from equity securities as the stock market rallied in the second quarter.
Gains from investment in equities were at $33.05 billion compared to a loss of $66.86 billion a year ago, when the stock market dove amid the economic uncertainties.
See Also: Is Berkshire (BRK-A) Stock A Good Buy
The company reversed to a net profit of $35.91 billion from a loss of $43.62 billion in the same quarter last year. Net earnings per Class A share came in at $24.78, reversing from a loss of $29.66 in the same period last year.
Berkshire's cash and cash equivalents increased from $128.59 billion at the end of 2022 to $147.377 billion at the end of the June quarter.
Berkshire's Blue Chip Bets: About 78% of Berkshire's aggregate fair value of equity investments were concentrated in five companies at the end of the second quarter.
- Apple, Inc. AAPL: $177.6 billion
- Bank of America Corp. BAC: $29.6 billion
- American Express Co. AXP: $26.4 billion
- Coca-Cola Co. KO: $24.1 billion
- Chevron Corp. CVX: $19.4 billion
Stock Action: Berkshire Hathaway's Class A shares closed at $533,600, down 1.37% on Friday, according to Benzinga Pro data. The stock scaled a new closing record of $541,000 in the previous session.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
