Berkshire Hathaway (BRKB.US) showcased a robust Q2 performance, propelling its stock towards an all-time high.
This surge in profits was predominantly attributed to its formidable insurance sector. The conglomerate’s class B shares surged by 4.20% to $364.4 on Monday, nearly surpassing the March 2022 peak of $359.57.
While there was a noticeable lag in share repurchases, the firm’s operating earnings surpassed estimates due to stellar results from insurance underwriting, investment income, and the Manufacturing, Service, and Retailing sectors.
Nonetheless, the mounting cash reserve hints at Berkshire’s challenge in identifying value-acquisition opportunities in an environment of inflated valuations.
Financial takeaways:
• Operating profits surged 7% YoY to reach $10 billion in the second quarter.
• The company’s cash pile hit $147 billion.
• Berkshire undertook share repurchases worth $1.4 billion in Q2, down from $4 billion in the preceding quarter.
• Insurance underwriting profits witnessed a 74% jump to $1.25 billion in Q2.
• Berkshire sold over $18 billion of stock on a net basis in the first half of this year, whereas it bought $34 billion on a net basis last year.
• Operating earnings (excluding gains in the company’s equity portfolio) hit a record of $10 billion, up 6% YoY.
• Berkshire’s book value grew 7% to about $373,000 per class A share from the first quarter.
• Cash, mainly held in the U.S. Treasury bills $99 bilion
• The company’s equity portfolio appreciated smartly due mainly to strength in the company’s largest holding, Apple.
Berkshire Hathaway (BRKB.US) – Class B shares are currently trading at historical peak. The previous all-time high (ATH) on daily closing was $361. Warren Buffett’s company’s shares have essentially been in an upward trend since the beginning of March of the current year. Since then, the shares have risen from the $300 level by over 20%. Source xStation5
