Berkshire with its more than 90 operating businesses, covering what seems to be from a pin to an anchor has shown a dramatic increase of 25 percent in profit.
The company’s current portfolio includes about $133 billion of stocks which encompass companies such as Kraft Heinz, Wells Fargo & Co, Coca-Cola Co and IBM Corp.
Berkshire maintained it has no plan to sell IBM, despite sitting on a $1.5 billion loss.
On its second quarter results, Berkshire Hathaway Inc on Friday said its second-quarter profit rose 25 percent, helped by improvement in insurance underwriting, investment gains and the purchase of Precision Castparts Corp, Warren Buffett’s largest acquisition.
The company’s performance, however, was hampered by depressed oil prices and coal demand weighed on volume at the conglomerate’s BNSF railroad unit, while units serving the oil, gas and heavy equipment industries weighed down the company’s performance.
On the other hand, other businesses, including the Geico auto insurer, boosted the company’s bottom-line.
Net income for Omaha, Nebraska-based Berkshire rose to $5 billion, or $3,042 per Class A share, from $4.01 billion, or $2,442, a year earlier.
Operating profit rose 18 percent to $4.61 billion, or $2,803 per Class A share, from $3.89 billion, or $2,367.
Analysts, in general, expected operating profit of about $2,911 per share.
Revenue rose 6 percent to $54.46 billion. Book value per share, Buffett’s preferred measure of growth, rose 1.7 percent from the end of March to $160,009.
Class A shares of The Omaha, Nebraska-based company closed at $218,010 on Friday. Its shares have risen 10 percent since the beginning of the year.
Yvad Billings, Readers Bureau, Fellow
Edited by Jesus Chan
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