Berkshire Hathaway stock is down in the second quarter, but the company’s operating businesses are performing well, despite some inconsistencies in insurance profitability. Warren Buffett’s announcement to step down as CEO has led to concerns, but the overall business seems to be running smoothly.
In the second quarter, Berkshire’s operating earnings declined due to currency losses and underwriting profit drops, but excluding these factors, operating earnings actually grew by about 10%. Solid growth was seen in the railroad, energy, and manufacturing businesses, among others.
Berkshire Hathaway has not bought back any shares recently, leading to speculation about the company’s strategy. While there are no formal limits to buybacks, the lack of repurchases in the second quarter has raised questions about the company’s capital allocation decisions.
Despite appearing to be a net seller of stocks in the second quarter, Berkshire Hathaway was actually a net buyer when excluding ongoing sales of Apple and Bank of America. The company added shares to existing positions and opened new ones in various industries like energy and homebuilding.
Overall, Berkshire Hathaway’s operating businesses are performing well, and while the lack of buybacks is notable, the company is finding other attractive investment opportunities. With a new CEO set to take over at the end of the year, it will be interesting to see how the conglomerate evolves in the post-Buffett era.

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