Berkshire Hathaway, the conglomerate led by billionaire Warren Buffett, achieved its highest-ever quarterly operating profit, accompanied by gains from stock holdings that helped the company record an overall profit of nearly $36 billion. Berkshire’s insurance businesses, buoyed by rising interest rates, dividend payouts, and an improved performance from Geico, saw a significant increase in profit, up 38 percent from the previous quarter. Geico’s positive results were attributed to rising premiums and reduced advertising. These successes counterbalanced losses in other sectors, such as the BNSF railroad, where a decline in consumer goods shipments and increased price competition from the trucking industry led to a 24 percent drop in profit.
Berkshire’s diverse portfolio extends beyond insurance, encompassing Berkshire Energy, multiple industrial companies, and well-known brands like Dairy Queen, Duracell, Fruit of the Loom, and See’s Candies. During the quarter, Berkshire’s operating profit rose by 7 percent to $10.04 billion. Net income amounted to $35.91 billion, a stark contrast to the $43.62 billion loss experienced in the second quarter of the previous year. Berkshire experienced growth in its cash stake, reaching $147.4 billion by the end of June, primarily driven by stock sales, including its significant holdings in Apple.
This quarter also marked the inclusion of Pilot, the truck stop operator in which Berkshire now owns an 80 percent stake. Pilot contributed $114 million to operating profit. As Berkshire’s chairman and CEO, Buffett, prepares to celebrate his 93rd birthday on August 30, he continues to dominate the Forbes list of the world’s richest individuals with a net worth of $117.5 billion. Berkshire’s class A shares closed just 2 percent below their record high at $533,600 on Friday. Year-to-date, the shares have seen growth of 14 percent, slightly trailing the 17 percent increase in the S&P 500 index.
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