Berkshire Hathaway’s operating profit up 38.8% from a year ago
Berkshire Hathaway, the conglomerate run by billionaire Warren Buffett, reported a loss of $43.8 billion in the second quarter of 2022. Despite this, Berkshire posted an operating profit of $9.283 billion.
This was achieved by offsetting new losses at Geico Car Insurer, where parts shortages and rising used car prices led to an increase in accident claims, with benefits from reinsurance and BNSF Railroad.
This represents a growth of 38.8 percent as compared to the same quarter a year ago. Profits from several of the group’s industries, including insurance, railroads and utilities, are included in operating income.
Berkshire said on Saturday it lost $43.8 billion due to a largely unrealistic $53 billion reduction in the value of its investments.
a Reuters report James Shanahan, analyst at Edward Jones & Company, was quoted as saying that despite the net loss, “the results show Berkshire’s resilience.” Shanahan also rated Berkshire as “neutral”.
Because of Buffett’s reputation and the fact that the performance of several of the group’s operating divisions often tracks macroeconomic trends, investors pay close attention to Berkshire.
These entities include trusted revenue generators such as its well-known energy firms, several industrial firms, and well-known consumer brands including Dairy Queen, Duracell, Fruit of the Loom and Seas Candies.
a CNBC Report said that in the second quarter, stocks fell into a bear market as the Federal Reserve aggressively raised interest rates to counter skyrocketing inflation and ease recession concerns.
Since March, Buffett has been gradually increasing his stake in Occidental Petroleum, giving Berkshire a 19.4 percent stake in the company, which is currently valued at $10.9 billion.
Occidental has been the S&P 500’s best-performing stock this year, which has seen its price more than double due to rising oil prices.
According to a report in financial TimesBuffett reportedly indicated during the group’s annual meeting in Nebraska in April that the multi-billion dollar stock buying frenzy was likely to slow as the year went on, remarking that the atmosphere at the corporation’s headquarters was “more sluggish”.
Later this month, when Berkshire and other major wealth managers disclosed their investments to regulators, investors will receive a more in-depth update on changes to the company’s stock portfolio.