Berkshire accelerates buybacks, lowers cash stake as profit tops forecasts
Berkshire Hathaway reported a surge in quarterly profit, surpassing analyst expectations, as it accelerated stock buybacks and reduced its cash reserves. The conglomerate's operating profit rose 16% to US$12.98 billion, while net income more than doubled to US$25.67 billion. The company repurchased US$4.5 billion of its own shares in the second quarter, along with an additional US$3.3 billion in July, marking an increase from March's repurchases.
Berkshire also expanded its investment in Alphabet, Google's parent company, by US$10 billion. The company's revenue grew by 10% to US$101.81 billion, but consumer-facing businesses like Geico, NetJets, and TTI faced challenges. Net income from insurance and reinsurance fell 11%, largely due to Geico's underwriting losses. Berkshire's market capitalization is close to 1.5 times its book value.
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