Warren Buffett walks inside to meet with Berkshire Hathaway shareholders before the annual shareholder meeting on May 3, 2024 in Omaha, Nebraska.
David A. Grogan
Berkshire HathawayThe company’s cash pile swelled to a record $276.9 billion last quarter as Warren Buffett sold a slew of shares, including apple.
The Omaha-based conglomerate has a relatively high cash reserve. The previous record was $189 billion.scheduled for the first quarter of 2024. The increase comes after the Oracle of Omaha Sold nearly half of Tim Cook’s tech giant In the second quarter.
Berkshire has sold off stocks for seven consecutive quarters, but the pace of selling has accelerated in recent times, with Buffett selling more than $75 billion in stocks in the second quarter. This brings the total amount of stocks sold in the first half of 2024 to more than $90 billion. Buffett continued to sell off some of his stocks in the third quarter, and Berkshire cut its second-largest holding. Bank of America, 12 consecutive daysDocuments filed this week show.
Berkshire Hathaway’s second-quarter operating profit, which includes earnings from the conglomerate’s wholly owned businesses, jumped on a strong performance from auto insurer Geico. Second-quarter operating profit totaled $11.6 billion, up about 15% from $10 billion a year earlier.
Buffett, who will turn 94 later this month, admitted at Berkshire Hathaway’s annual shareholder meeting in May that he was willing to deploy capital but that high prices made him hesitate.
“We’re happy to spend money, but unless we think[a business]is doing something that has very little risk and is going to make us a lot of money, we’re not going to spend it,” the investing icon said at the time. “It’s not like I’m on a hunger strike or anything like that. It’s just that … things aren’t attractive.”
The conglomerate repurchased just $345 million of its own shares in the second quarter, down significantly from the $2 billion it spent in each of the previous two quarters.
The S&P 500 has surged to records over the past two years as investors bet the Federal Reserve will lower inflation by raising interest rates while avoiding a recession. So far in 2024, the S&P 500 is up 12%. However, some recent weak data, including a disappointing July jobs report on Friday, has stoked concerns about a slowdown. The Dow Jones Industrial Average fell 600 points on Friday. Investors have also recently fretted about valuations in the tech sector, which has led a bull run on optimism about innovation in artificial intelligence.
Geico boosts profits
Geico, which Buffett calls his “favorite child,” had pre-tax underwriting profits of nearly $1.8 billion in the second quarter, more than triple the $514 million in the same period last year.
Profit BNSF Railway Reached US$1.6 billion, the same as last year. Berkshire Hathaway Energy Earnings in the utility business fell to $326 million, almost half of the $624 million in the same period last year. BHE continues to face pressure over possible wildfire liability.
Berkshire Hathaway “A” shares year to date
Berkshire’s second-quarter net income, which includes short-term investment gains or losses, fell to $30.3 billion from $35.9 billion a year earlier. Buffett warned investors not to focus on quarterly fluctuations in unrealized gains on investments because they could be “very misleading.”
