Berkshire Hathaway’s Operating Earnings Surge by Almost 7%, Cash Reserve Nears $150 Billion

On Saturday, Berkshire Hathaway announced robust growth in second-quarter operating earnings, accompanied by a substantial cash reserve of almost $150 billion within Warren Buffett’s conglomerate. During the last quarter, the company’s operating earnings, encompassing profits from various businesses like insurance, railroads, and utilities, reached $10.043 billion, representing a 6.6% increase compared to the same quarter a year ago. Net income amounted to $35.91 billion, in stark contrast to the $43.62 billion loss incurred in the second quarter of the previous year. This remarkable improvement was fueled by an upswing in Berkshire’s insurance underwriting and investment income. One significant factor contributing to Berkshire’s impressive performance was the nearly $26 billion unrealised gain from its investments, primarily due to its substantial stake in Apple. The tech giant’s remarkable 18% surge during the quarter resulted in Berkshire’s investment ballooning to $177.6 billion.

Warren Buffett, known as the “Oracle of Omaha,” adjusted his portfolio, reducing his Chevron stake by $1.4 billion to $19.4 billion by the end of June. Chevron’s shares had lagged behind the broader market, dropping more than 11%, while the S&P 500 rallied nearly 17% in 2023. Berkshire’s cash reserves grew, reaching $147.377 billion at the end of June, approaching a record high and significantly higher than the $130.616 billion reported in the first quarter. As the conglomerate’s stock reached a record high, share repurchase activity slowed down. Only approximately $1.4 billion was spent on buybacks during the quarter, making the year-to-date total $5.8 billion. In the latest trading session, Berkshire’s Class A shares achieved a new record close of $541,000, surpassing the previous high of $539,180 set on March 22, 2022. So far this year, the stock has gained an impressive 13.8%.