The flourishing insurance and investment segments helped Berkshire Hathaway – Warren Buffett’s company – make big profits in the second quarter.
Berkshire Hathaway on August 5 released its second-quarter financial results. Accordingly, operating profit in the second quarter set a record with 10 billion USD, up 6.6% over the same period last year.
Berkshire’s net profit also amounted to $35.9 billion — in stark contrast to a $43.6 billion loss in the second quarter of last year, thanks to underwriting and investment returns.
Insurance appraisals brought Berkshire $1.25 billion, nearly double last year. Berkshire explained that this segment has grown in profits thanks to higher auto insurance premiums, lower advertising costs and a decrease in the number of claims filed by customers.
Meanwhile, the return on investment was 25.9 billion USD. Last year, this operation lost 53 billion USD. Apple stock – the largest investment in Berkshire’s portfolio – rose in price by nearly 18 percent last quarter. Berkshire’s stake in the company is now $177.6 billion.
In contrast, Warren Buffett ‘s company reduced its stake in Chevron by $1.4 billion, to $19.4 billion at the end of June. Its shares have lost 11% this year.
However, Berkshire’s energy and freight companies posted a year-over-year decline in profits. This is due to rising labor costs, competition from freight trucks and less consumables being transported.
Investors often keep a close eye on news related to Berkshire, thanks to Buffett’s reputation. Berkshire’s business results also reflect general trends in the economy, as the company is involved in many sectors.
Berkshire’s cash mountain at the end of the second quarter was $ 147 billion, much higher than $ 130 billion in the first quarter. The company’s class A share price also reached a new peak last week, to $ 541,000.
At the end of this month, Buffett will turn 93. According to Forbes , he currently has a fortune of $117 billion and is the sixth richest person in the world.
Related
Source: Vietnam Insider