economy
Berkshire earnings rose last quarter and CEO Greg Abel is starting to deploy Buffett's massive cash hoard
Strength across its energy, railroad and manufacturing businesses more than offset weaker insurance results.
TL;DR
- Operating earnings grew 16% to $12.98 billion in the second quarter.
- Manufacturing, service, and retailing earnings rose 24% to $4.47 billion.
- Berkshire Hathaway Energy's profit increased by 27% to $891 million.
- BNSF railroad's profit saw a 6% increase to $1.56 billion.
- Insurance underwriting earnings fell 13% to $1.73 billion.
- Berkshire repurchased approximately $4.5 billion of its shares in the quarter.
- The company's cash pile decreased to $365.5 billion from $397.4 billion.
- Berkshire became a net buyer of equities, with nearly $20 billion in purchases.
- Alphabet is now among Berkshire's five largest equity holdings.
- Buffett confirmed he consulted with Abel on the $10 billion Alphabet investment.