HomeBusinessBuffett's Berkshire Earnings Rise;...

Buffett’s Berkshire Earnings Rise; Cash Swells As Buybacks Cool

Warren Buffett’s Berkshire Hathaway (BRKB) reported second-quarter earnings Saturday morning.


Berkshire Earnings Fall

Operating earnings rose 7% to $10.04 billion vs. a year earlier. Insurance underwriting profit surged 74%.

Analysts expected Berkshire earnings to fall 8% vs. a year earlier to $3.87 a share, with revenue up nearly 6% to $80.58 billion. In Q1, Berkshire earnings grew 14% to $3.69 a share, topping views. Operating earnings rose 12.6% to $8.065 billion.

Warren Buffett has said he favors looking at operating income. That reflects total profits from the companies that Berkshire owns and runs. Those include insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing and retailing.

Net earnings include short-term investment gains. Share prices rose strongly in the second quarter.

Rising interest rates should fuel strong investment income, with Berkshire investing heavily in short-term T-bills with yields above 5%. Warren Buffett expressed his confidence in Treasurys this past week after Fitch Ratings downgraded the U.S. sovereign credit rating to AA+ from AAA.

Did Warren Buffett Sell Stocks In Q2?

Investors will also want to know about whether Buffett’s conglomerate added or sold equities overall in the quarter. In Q1, Berkshire sold a net $10.4 billion worth of stocks.

Apple (AAPL) accounts for nearly half of Berkshire’s equity portfolio. Apple stock has been a strong performer, up 40.1% year to date. But the Dow tech titan did tumble 7.1% last week amid the market retreat and its own lackluster earnings.

Bank of America (BAC) is another big holding. BAC stock and many banks struggled in the second quarter after the March banking crisis, but rebounded in July.

Warren Buffett has been bulking up on energy, continuing to add to its stake in Occidental Petroleum (OXY). In early July, after the second quarter, Berkshire Hathaway Energy agreed to buy out the Dominion Energy (D) stake in a Maryland liquefied natural gas export project for $3.3 billion. That will give Berkshire a 75% stake.

Berkshire added slightly to Apple and BAC stock holdings in the first quarter. It will release specific Q2 stock buys and sells in a few weeks.

Berkshire Stock Buybacks Slow

Warren Buffett bought just $1.4 billion of Berkshire stock in the second quarter. In Q1, Berkshire repurchased $4.4 billion, up 57% from Q4 and the most since Q1 2021.

Berkshire Cash Hoard Swells

Berkshire Hathaway ended the second quarter with a mammoth cash hoard of $147.38 billion, up sharply from Q1’s $130.62 billion and Q4’s $128 billion.

Berkshire Stock

BRKB stock fell 1.1% to 349.99 on Friday. But shares rose 18 cents for the week, eking out their fourth straight weekly gains. BRKB stock is slightly extended from a buy point from a 331.84 buy point decisively cleared in early June.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


Warren Buffett Stocks: What’s Inside Berkshire Hathaway’s Portfolio?

Why This IBD Tool Simplifies The Search For Top Stocks

Catch The Next Big Winning Stock With MarketSmith

Time The Market With IBD’s ETF Market Strategy

Market Rally At Inflection Point; What To Do Now

Source link

Most Popular


Please enter your comment!
Please enter your name here

More from Author

Cisco to buy cybersecurity firm Splunk for $28 billion

Sept 21 (Reuters) - Cisco Systems (CSCO.O) on Thursday agreed...

SAG-AFTRA Says ‘Dancing With the Stars’ Appearances Are Fine, Don’t Run Afoul of Its Strike

‘Dancing With the Stars,’ from left: Val Chmerkovskiy, Gabby Windey,...

Bruce Feldman’s Week 4 college football picks against the spread

Sign up for the Until Saturday newsletter | Jayna Bardahl...

Read Now

Cisco to buy cybersecurity firm Splunk for $28 billion

Sept 21 (Reuters) - Cisco Systems (CSCO.O) on Thursday agreed to buy cybersecurity firm Splunk (SPLK.O) for about $28 billion in its biggest-ever deal to strengthen its software business and capitalize on the boom in artificial intelligence.The deal, which is the biggest technology transaction of the...

SAG-AFTRA Says ‘Dancing With the Stars’ Appearances Are Fine, Don’t Run Afoul of Its Strike

‘Dancing With the Stars,’ from left: Val Chmerkovskiy, Gabby Windey, ‘Premiere Night Party’ Eric McCandless/Disney+/Courtesy Everett Collection As the Writers Guild of America continues to picket Dancing With the Stars rehearsals, SAG-AFTRA is saying its members on the production aren’t running afoul of any of its strike rules. “Our...

Bruce Feldman’s Week 4 college football picks against the spread

Sign up for the Until Saturday newsletter | Jayna Bardahl and The Athletic’s college football staff deliver expert analysis on the biggest CFB stories five days per week. Get it sent to your inbox. I had a modest week, going 6-5 against the spread. The good: nailing another...

First iPhone 15 and iPhone 15 Pro Orders Arriving to Customers in Australia and New Zealand

It is already Friday, September 22 in New Zealand and Australia, which means customers in those countries who pre-ordered an iPhone 15, iPhone 15 Pro, Apple Watch Series 9, Apple Watch Ultra 2, or AirPods Pro with USB-C case are beginning to receive their devices. Apple fans...

FTC sues Texas anesthesiology provider to bust monopoly

The Federal Trade Commission sued the largest anesthesiology provider in Texas, claiming the company has wielded monopoly power to drive up prices for patients and boost its profits.The FTC asked a federal judge in Houston, Texas, to break up U.S. Anesthesia Partners alleged monopoly power and...

Sources: Cowboys star CB Diggs has torn ACL

Todd ArcherESPN Staff WriterSep 21, 2023, 03:56 PM ET3 Minute ReadFRISCO, Texas -- Dallas Cowboys star cornerback Trevon Diggs has a torn ACL in his left knee, sources told ESPN's Adam Schefter.Diggs suffered the injury Thursday during a one-on-one drill in practice and was briefly spotted...

CEOs Return to WGA Talks as Some Movement Seen Toward a Deal

AFP via Getty Images Four Hollywood CEOs returned to the bargaining table Thursday for a second day of talks with the Writers Guild of America, as the industry looked for signs of progress toward a deal that would end the 143-day strike. Sources said the studios made moves...

Warzone Season 6 brings back fan-favorite Zombie game mode – Dexerto

Ryan Lemay  ❘   Published: 2023-09-21T18:46:38  ❘   Updated: 2023-09-21T18:46:52 Activision unveiled the Modern Warfare 2 and Warzone Season 6 roadmap, highlighted by the return of Zombie Royale. Modern Warfare 2 and Warzone Season 6: The Haunting embraces a Halloween theme. Fittingly, the update adds new...

Trump urges government shutdown in unlikely bid to ‘defund’ his criminal prosecutions

Former U.S. President and Republican presidential candidate Donald Trump speaks during a 2024 presidential campaign rally in Dubuque, Iowa, U.S. September 20, 2023. REUTERS/Scott Morgan/File Photo Acquire Licensing RightsSept 21 (Reuters) - Former President Donald Trump has urged fellow Republicans in Congress to shut...

For Tesla and Musk, Auto Strike Carries Benefits and Risks

The United Automobile Workers strike against the Michigan automakers would seem to be nothing but good news for Tesla, the electric vehicle maker that has upended the industry and stolen customers from Ford Motor, General Motors and Stellantis, which owns Jeep and Ram.Unencumbered by an activist...

Lengthy lane closure coming to U.S. 41 southbound Twin Bridge

Chuck Stinnett  |  Special to the Courier & PressDriving from Evansville to Henderson could be a little tricky over the next couple of months.The southbound U.S. 41 Twin Bridge will be down to one lane from this Monday (Sept. 25) through Nov. 18 for a special extended...

Russell Brand ‘exposed himself to woman then laughed about it on BBC radio’

Resurfaced footage shows moment Katy Perry found out Russell Brand dumped herSign up to our free IndyArts newsletter for all the latest entertainment news and reviewsSign up to our free IndyArts newsletter A woman has alleged Russell Brand exposed himself to her and then laughed about it...