Warren Buffett’s Berkshire posts $35.5 billion profit, buys back more stock

Net income That equated to $24,377 per Class A share, and up from $5.58 billion, or $3,784 per share, a year ago.

Quarterly operating profit rose 13% to $8.07 billion, or about $5,561 per Class A share, from $7.16 billion.

Omaha, nebraska-based company said it also repurchased $4.4 billion of its own stock in the quarter.

While Berkshire has a succession plan in place, with Vice Chairman Greg Abel succeeding Buffett as CEO, investors know their time to see and hear from Buffett and longtime Vice Chairman Charlie Munger is limited.

“Even though I’ve been at it for 32 or 33 years, it’s enjoyable, uplifting, and you’re always learning something new,” says Paul Lountzis, who makes Berkshire his biggest investment at Lountzis Asset Management LLC in Wyomissing, Pennsylvania.

“Charlie is 99 and Warren turns 93 on August 30,” Lountzis said, “and you don’t know how many more you’re going to have.”

Buffett and Munger are scheduled to answer shareholder questions for five hours at the meeting. Abel, who oversees Berkshire’s dozens of non-insurance businesses, and Vice Chairman Ajit Jain, who oversees insurance operations, will join in the morning.

Buffett Berkshire saysOperating income, which excludes investments, is a better measure of a company’s performance. By that measure, Berkshire’s operating income rose nearly 13% to $8.065 billion from $7.16 billion a year earlier.

No major new stock investments were disclosed this year in the quarterly report. But despite fears of a recession, most Berkshire companies performed well.

Berkshire’s insurance unit, which includes Geico and several large reinsurers, reported operating profit of $911 million, up from $167 million last year, driven by a rebound in Geico’s results. Geico benefited from charging higher premiums and reduction in advertising expenses and claims.

But Berkshire BNSF Railroad and its larger utility unit reported lower profits. BNSF earned $1.25 billion, down from $1.37 billion, as the number of shipments dropped 10% after losing a major customer and slowing imports at West Coast ports. The utility division added $416 million, down from $775 million last year.

In addition to those core businesses, Berkshire owns an eclectic assortment of dozens of other businesses, including a number of retail and manufacturing companies such as See’s Candy and Precision Castparts.

Berkshire is again facing pressure from activist investors, who are urging the company to do more to list its climate change risks in company reports. Shareholders were expected to set aside that measure and all other shareholder proposals Saturday afternoon because Buffett and the board opposed them, and Buffett controlled more than 30% of the vote.

The text of this story is published from a wire agency feed without any modification.