Key Takeaways From Berkshire Hathaway's Earnings

Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) updated investors connected its second-quarter financial results Saturday, revealing its rate heap roseate to a grounds precocious arsenic it made much cuts to its liking successful Apple (AAPL), while its operating profit surged arsenic its security underwriting business made gains, and more.

Berkshire’s Cash Pile Rises to a Record $276.9 Billion

Berkshire's rate and U.S. Treasury holdings roseate to different grounds precocious successful nan 2nd 4th astatine $276.9 billion, pinch $234.6 cardinal of that successful Treasury bills. In nan first quarter, nan company’s rate heap totaled $189 billion. 

Buffett has been a longtime instrumentality of Treasurys, calling them “the safest finance location is” astatine Berkshire’s annual gathering successful May, though nan monolithic size of Berkshire’s increasing reserve has raised speculation astir really nan institution mightiness yet deploy it—or support adding to it, pinch Treasury measure yields complete 5%. 

While nan patient could move to grow its portfolio, Buffett suggested earlier this twelvemonth that fewer candidates successful nan U.S. fulfill Berkshire’s criteria, pinch "essentially nary candidates” elsewhere, saying “things aren’t attractive.”

The emergence successful Berkshire's rate heap came arsenic it said it sold $75.5 cardinal worthy of banal successful nan quarter. The institution utilized $345 cardinal to bargain backmost Berkshire stock. 

Berkshire Slashes Its Stake successful Apple Further

After trimming its liking successful Apple by astir 13% successful nan first quarter, Berkshire trim its liking further, reporting that its Apple holdings were weighted astatine $84.2 cardinal astatine nan extremity of nan 2nd quarter, suggesting it sold astir 390 cardinal shares aliases astir half its stake. 

Berkshire besides lowered its liking successful Bank of America (BAC). While not reflected successful Saturday's report, Berkshire continued trimming its liking successful Bank of America successful July, caller filings showed. 

Berkshire retains important stakes successful Apple and Bank of America contempt nan cuts, pinch nan 2 stocks still representing its apical holdings, though Berkshire’s trading spree complete nan past fewer quarters has raised speculation Buffett whitethorn beryllium concerned astir nan marketplace becoming overheated aliases raising rate for successors. 

Back successful May, Buffett had suggested earlier income of Apple banal came arsenic Berkshire was building its rate position, and said it’s "extremely likely" Apple would still beryllium Berkshire's largest holding astatine nan extremity of 2024. 

Operating Income Surges Over 15% arsenic Insurance Business Improves

Berkshire’s operating income, which Buffett has said provides a amended image of nan wellness of nan company's businesses than nett income, came successful astatine $11.6 billion, up from $11.2 cardinal successful nan first quarter, and $10 cardinal a twelvemonth earlier. 

Nearly half of nan gains successful Berkshire’s operating income came from underwriting and investments successful Berkshire's security businesses arsenic claims costs and catastrophe claims eased. Berkshire’s BNSF Railway and Berkshire Hathaway Energy inferior businesses weighed connected results. 

Berkshire Hathaway's Class B shares person outperformed nan S&P 500 truthful acold this year, up astir 20% since nan commencement of nan year, astatine $428.36 arsenic of Friday's close.