Warren Buffett, (Pic: Chip Somodevilla)
Summary
- Berkshire Hathaway just released its Q2 earnings, beating revenue expectations by $12 billion and delivering $10.4 billion in operating income.
- Insurance operations experienced a large increase in cash flows and the value of the stock portfolio rose significantly.
- Despite being near an all-time high, Berkshire Hathaway stock is still worth investing in, with a range of fair value estimates suggesting upside potential.
- In this article I explain why I remain long Berkshire Hathaway stock following its Q2 earnings release.
Berkshire Hathaway (BRK.A) (NYSE:BRK.B) just released its second quarter earnings. The company beat by $12 billion on revenue and delivered $10.04 billion in operating income. The company’s insurance operations experienced a large increase in cash flows, and its stock portfolio increased significantly in value, helped by big gains in Apple (AAPL) stock. Overall, it was a strong release.
Heading into the second quarter release, Warren Buffett made waves by announcing that he was buying short-term treasuries in large volumes. This was taken by some as evidence that he was taking the opposite side of Bill Ackman’s short treasuries trade, although Buffett bought short term securities while Ackman shorted the 30 year.
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