Berkshire Hathaway Posts Its Highest Operating Profit In The Last Quarter

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Berkshire Hathaway Posts Its Highest Operating Profit In The Last Quarter

Berkshire Hathaway recently posted about its highest operating profit in the last quarter over the weekend. The overall operating profit was close to $36 billion. The given profit was due to a major boost in the stock holdings, supplemented by rising rates of interest and higher dividend payouts. All these factors resulted in a rebound in performance.

The boost in the stock holdings was due to a higher performance of Geico Car Insurer. The performance of these stocks helped to improve the profit margin and contributed significantly (by almost 38%) to Berkshire Hathaway’s insurance business as compared to the second quarter of 2022.

According to Forexlive.com

The gains in the insurance business helped to counterbalance declines in other businesses, such as the BNSF railroad, which saw a 24% drop in overall profit due to lower consumer goods shipments and increased price competition from the trucking industry…The results also included a full quarter of the truck stop operator Pilot, in which Berkshire owns an 80% stake, and which contributed $114 million to operating profit.

In the second quarter of 2023, Berkshire Hathaway’s operating profit increased by 7% from $9.42 billion in 2022 to $10.4 billion. On the other hand, the net income also increased to $35.91 as compared to a loss of $43.63 billion in the second quarter of 2022.

In addition to that, Berkshire repurchased $1.4 billion in stock. The company is a major net seller of stocks. However, it released about $8 billion in more stocks than it bought. This further increased its level of cash to $147.4 billion by 30th June 2023, which increased from $130.6 billion three months ago. This led to a record increase in cash stake.

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