Berkshire Hathaway's second-quarter earnings report shows strong performance with operating earnings up

From Morningstar: 2024-08-09 11:52:00

Berkshire Hathaway released its second-quarter earnings report on August 5 with operating earnings up 15.5% year over year to $11.6 billion in June and 26.0% to $22.8 billion over the first half of the year. Strong insurance results offset weakness in other segments. The firm’s cash pile hit a record $277 billion, with a low uncertainty rating and a fair value estimate of $640,000 per Class A share and $427 per Class B share. While the company remains a net seller of equities, its insurance operations, generating low-cost float and strong underwriting gains, contribute significantly to its overall business. Berkshire Hathaway’s strong balance sheet and liquidity, along with its low exposure to ESG risks, are key competitive advantages, despite governance concerns and the potential impact of CEO Warren Buffett’s eventual succession. Bulls point to the firm’s impressive historical book value growth, outpacing the S&P 500 TR Index, as a positive indicator of long-term intrinsic value.



Read more at Morningstar: After Earnings, is Berkshire Hathaway Stock a Buy?