Aug 05, 2023 at 8:40 PM Update: 3 hours ago
The well-known American investor Warren Buffett was able to record a substantial profit in the second quarter at his investment vehicle Berkshire Hathaway. Below the line, the company had about $ 36 billion left.
A year ago there was still talk of a loss of almost 44 billion dollars. Buffett, also known as the ‘oracle of Omaha’, owes this enormous improvement in results mainly to the fact that the shares of companies in which he invests, such as Apple, have increased in value considerably.
Berkshire Hathaway also benefited from this in the first three months of the year, when profits were more than six times higher than a year earlier. Last year, the results were still very bad.
Berkshire Hathaway has been owned by Buffett since the 1960s. The firm was initially a textile manufacturer, but Buffett transformed the company into a major business empire.
The now 92-year-old American previously warned that last year’s figures actually gave a distorted picture. Berkshire Hathaway opts for long-term investments. Price fluctuations on a quarterly or annual basis would not be a good indicator in the eyes of Buffett and his business partner Charlie Munger, who is already 99.
Experts therefore prefer to look at the operating profit at Berkshire Hathaway. It came to $10 billion. That is the highest quarterly figure ever, but it does not represent such a huge profit jump compared to the more than 9 billion dollars of a year ago.
In addition, performance was mainly helped by thriving insurance activities. That offset worse numbers at other companies in which Buffett has interests. For example, the investor is also in the rail company BNSF, where the deteriorating economic conditions weighed on the result.
2023-08-05 18:40:49
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