Berkshire Hathaway reported operating earnings of $12.98 billion in the second quarter, up 16% from $11.16 billion in the prior-year period. The improvement was driven by strong performance across multiple business segments, with manufacturing, service and retailing earnings jumping 24% to $4.47 billion and Berkshire Hathaway Energy’s profit surging 27% to $891 million. The railroad division BNSF posted a 6% increase to $1.56 billion. Insurance operations represented a weaker area, with underwriting earnings declining 13% to $1.73 billion and insurance investment income falling 9% to $3.06 billion.
Under CEO Greg Abel, who assumed leadership at the start of the year, the company accelerated its deployment of capital accumulated under former CEO Warren Buffett. Berkshire repurchased approximately $4.5 billion of its own shares during the quarter, a significant jump from $235 million in buybacks during the first three months. The company’s cash balance declined to $365.5 billion at the end of June from $397.4 billion three months prior, reflecting the combination of buybacks, other capital investments, and the closing of the Taylor Morrison acquisition.
A notable shift in investment strategy became evident as Berkshire reversed a prolonged pattern of equity sales, becoming a net buyer of stocks in the second quarter with nearly $20 billion in net purchases. This marked the end of 14 consecutive quarters of being a net seller. The conglomerate’s five largest equity holdings by market value at quarter-end included Alphabet, which Berkshire added to its portfolio with a $10 billion investment earlier in the year to support AI development, alongside longtime positions in American Express, Apple, Bank of America, and Coca-Cola.
Berkshire shares gained 3% year-to-date, trailing the S&P 500’s 13% advance, though the stock rose 9% over the preceding three months. The results demonstrated Abel’s willingness to deploy the substantial cash reserves that Buffett had accumulated while maintaining cautious positioning, reflecting shareholder expectations for more active capital deployment going forward.
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