Berkshire Hathaway (BRKB.US) reported a solid financial performance in the second quarter earnings, with its stock heading towards a record high. The firm reported significant operating profit gains driven mainly by its strong insurance sector. The conglomerate's class B shares climbed by up to 4.20% to $364.4 on Monday, inching closer to its all-time closing high of $359.57 set in March 2022. Despite the "slower-than-expected share repurchases", the company's operating earnings were robust, exceeding expectations, thanks to outperformance from insurance underwriting, investment income, and the Manufacturing, Service, and Retailing segment. However, it should be noted that the current stockpile of cash, approaching a record level, indicates the company's struggle to find acquisition bargains or stocks amid high valuations.
Key Financial Highlights:
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Open account Try demo Download mobile app Download mobile app- 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%.
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