Berkshire Hathaway earnings scales back share repurchases to $1.0B (NYSE:BRK.B)

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Berkshire Hathaway (NYSE:BRK.B) (BRK.B) scaled back its share repurchases in the second quarter of the year. Q2 operating earnings rose from the previous quarter and from a year ago. Slumping equity markets in the quarter, though, caused the company to record investment and derivative losses, resulting in a net loss for the quarter.

The company bought back ~$1.0B of common stock during the quarter, vs. $3.2B it spent in Q1 and $6.9B of shares it repurchased in Q4 2021.

The Omaha-based company that Warren Buffett built held $!05.4B of cash and short-term securities as of June 30, 2021, down only slightly from $106.3B at March 31.

Q2 operating earnings of $$9.28B vs. $7.04B in Q1 and $6.69B in Q2 2021.

Berkshire (BRK.B) posted $53.0B in investment and derivative losses in the quarter vs. losses of $5.45B in the prior quarter and gains of $21.4B in the year-ago quarter. That results in a net loss of $43.8B vs. earnings of $5.46B in Q1 and net earnings of $28.1B a year ago.

Insurance float was ~$147B at June 30, vs. $148B at March 31.

Operating earnings by segment vs. previous quarter and a year ago:

  • Insurance underwriting — $581M vs. $47M in Q1 and $376M in Q2 2021.
  • Insurance – investment income — $1.91B vs. $1.17B and $1.22B
  • Railroad — $1.66B vs. $1.37B and $1.52B
  • Utilities and energy — $766M vs. $750M and $740M
  • Manufacturing, service and retailing — $3.25B vs. $3.03B and $3.00B
  • Other — $1.12Bvs. $677M and -$169M

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See why SA contributor Yiannis Zourmpanos calls Berkshire (BRK.B) a stock to navigate the recession

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