Berkshire Hathaway, announced a robust rise in second-quarter operating earnings, with Warren Buffett‘s conglomerate amassing a cash reserve of almost $150 billion. The company’s operating earnings, including profits generated from its diverse range of businesses such as insurance, railroads, and utilities, amounted to $10.043 billion in the last quarter, reflecting a 6.6% increase compared to the corresponding quarter from the previous year.
During the second quarter, net income witnessed a significant turnaround, amounting to $35.91 billion, in contrast to the $43.62 billion loss incurred in the same quarter last year. This impressive performance was mainly attributed to the surge in Berkshire’s insurance underwriting and investment income.
Berkshire’s Success in Q2 2023
One of the key contributors to Berkshire’s success was the nearly $26 billion unrealized gain from its investments, primarily driven by its substantial stake in Apple. The tech giant’s remarkable rally of nearly 18% in the quarter resulted in Berkshire’s investment value reaching an impressive $177.6 billion.
As part of his portfolio adjustments, the renowned investor, often referred to as the “Oracle of Omaha,” decided to reduce his stake in Chevron by $1.4 billion, bringing it down to $19.4 billion by the end of June. The decision was likely influenced by Chevron’s underperformance in comparison to the broader market, with its shares declining more than 11% while the S&P 500 surged approximately 17% in 2023.
By the end of June, Berkshire’s colossal cash reserve expanded to $147.377 billion, nearing a historic high and significantly surpassing the $130.616 billion reported in the first quarter.
With the conglomerate’s stock surging back to a record level, the pace of share repurchases decelerated. Merely around $1.4 billion was spent on buybacks during the quarter, bringing the total buyback expenditure for the year to $5.8 billion.
On Thursday, the conglomerate’s Class A shares achieved a new record closing price of $541,000, surpassing its previous peak of $539,180 attained on March 22, 2022. Remarkably, the stock has experienced a notable 13.8% gain in value this year.
Berkshire Hathaway reported strong Q2 operating earnings, up 6.6% to $10.043B, and a remarkable net income of $35.91B, rebounding from last year’s loss. The conglomerate’s cash reserve reached $147.377B, while Class A shares hit a record high of $541,000.