Strong earnings propel Berkshire Hathaway higher as Buffett accumulates near-record cash reserves

Warren Buffett’s Berkshire Hathaway Hits Record High Following Strong Quarterly Report

Berkshire Hathaway shares reached record highs on Monday following a strong quarterly report that showcased a rebound in insurance operations and a significant increase in the conglomerate’s cash reserves. The Class A shares of Berkshire soared 3.4% to hit an all-time high of $551,920, while Class B shares jumped 3.6% to reach a new record close of $362.58.

The Omaha-based giant reported a 6.6% increase in operating earnings, totaling $10.04 billion in the last quarter. Insurance underwriting earnings saw an impressive 74% increase to $1.25 billion, benefiting from higher interest rates and lower catastrophe losses. This strong performance in insurance helped offset weaknesses in other areas such as railroad due to lower volumes.

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Furthermore, Berkshire’s massive cash pile grew to nearly $150 billion by the end of June, near a record high and much higher than the previous quarter’s $130.62 billion. The conglomerate is now earning a significant return on its cash thanks to elevated interest rates.

Bill Stone, chief investment officer at Glenview Trust and a Berkshire shareholder, commented on Berkshire Hathaway’s resilient earnings, emphasizing the value of its diversified business mix and growing cash reserves. The company also reported a nearly $26 billion unrealized gain from its investments, with a large portion of this gain coming from its substantial stake in Apple. Berkshire’s Apple investment has ballooned to $177.6 billion.

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Analysts see Berkshire Hathaway as an attractive play in the current uncertain macro environment, with Brian Meredith, a Berkshire analyst at UBS, highlighting the potential for growth and stability in the company’s shares.

Overall, the strong quarterly report and impressive performance of Berkshire Hathaway have positioned the conglomerate as a top contender in the market, bolstered by its diverse business mix and strategic investments.

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