Warren Buffett, CEO and Chairman of Berkshire Hathaway.
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Berkshire Hathaway shares hit a record high on Monday after a strong quarterly report that highlighted a surge in insurance operations as well as a massive cash pile that grew to nearly $150 billion.
Berkshire’s Class A shares rose 3.4% on a AA closing basis to an all-time high of $551,920, higher than the group’s previous high from March 2022. Class B shares of Warren Buffett’s group jumped a similar 3.6%, reaching a new record close of $362.58. ,
The Omaha-based giant reported Saturday that its operating income increased 6.6% year over year last quarter, totaling $10.04 billion.
Insurance underwriting income increased 74% to $1.25 billion, benefiting from higher interest rates and lower catastrophe losses. Solid performance in insurance helped offset softness in railroads due to lower volumes.
Meanwhile, Berkshire’s massive cash reserves rose to $147.38 billion at the end of June, near a record and well above the $130.62 billion in the first quarter.
The increased interest rates are now enabling Berkshire to earn huge returns on its cash. The group had more than $97 billion in short-term Treasury bills. Buffett previously revealed that he is buying $10 billion worth of 3-month or 6-month T-bills every Monday.
“Berkshire Hathaway’s resilient earnings reflect the value of its diversified business mix as it grows its cash reserves,” said Bill Stone, chief investment officer of Glenview Trust and a Berkshire shareholder.
Berkshire has also recorded an unrealized profit of about $26 billion from its investments, and the majority of this profit has come from its huge stake in Apple. The tech giant fueled the market’s rally in the second quarter, climbing nearly 18%. Berkshire’s bet on Apple has increased to $ 177.6 billion.
“We believe BRK shares are an attractive play in an uncertain macro environment,” UBS Berkshire analyst Brian Meredith said in a note.
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