Warren Buffett’s Berkshire Hathway announces Q2 results; details inside

Berkshire Hathaway released their second-quarter earnings, revealing a 7% increase in operating income, soaring to USD 10,043 million on Saturday. The growth was primarily attributed to the robust performance of their investment segment.  

If we check the total revenue earned by the company during the second quarter then, the revenue grew by 21% YoY from USD 92,503 million to USD 76,201 million. 

The company experienced a remarkable turnaround in Investment and derivative gains, surging from a loss of USD 53,038 million in the previous quarter to a substantial gain of USD 25,869 in the quarter ending June 2023. 

Berkshire Hathaway’s impressive performance in operating income and investment gains resulted in remarkable net earnings of USD 35,912 million for the second quarter, representing a significant surge of 182% compared to the previous fiscal quarter’s loss of USD 43,621 million. 

Over the first six months of 2023, the company experienced a substantial growth of 287%, reaching USD 71,416 million in net earnings, a notable improvement from the net loss of USD 38,041 million recorded during the same period last year. 

By the conclusion of the second quarter, Berkshire Hathaway’s cash reserves reached an unprecedented peak of USD 147.3 billion. This substantial amount marks the company’s highest cash pile, surpassing the previous record of USD 130.6 billion held in the initial quarter. 

In a press release, Berkshire Hathaway disclosed that they spent approximately USD 1.4 billion on repurchasing their shares during the second quarter of 2023, making the total repurchases for the first six months amount to USD 5.8 billion.  

As of June 30, 2023, the company had 1,447,541 Class A equivalent shares outstanding. Additionally, the insurance float, representing the net liabilities assumed under insurance contracts, stood at around USD 166 billion as of June 30, 2023, marking an increase of approximately USD 2 billion from the year-end 2022 figure. 

The insurance segment exhibited robust growth and significantly contributed to Berkshire Hathaway’s operating earnings. Insurance underwriting witnessed a substantial increase of 74%, reaching USD 1,247 million in the current quarter compared to USD 715 million during the corresponding quarter of the previous fiscal year. Additionally, the insurance-investment income saw a notable jump, rising from USD 1,906 million in Q2FY23 to USD 2,369 million in Q2FY24. 

However, earnings from Berkshire Hathaway Energy Company experienced a slight decline, decreasing marginally from USD 789 million in the previous quarter to USD 785 million in the current quarter. 

On Friday the share of the company closed at USD 349.99, which is a 1.08% decline from the previous day’s closing price of USD 353.81 each on the New York Stock Exchange. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.