Berkshire Hathaway Inc. delivered a strong Q2, highlighted by robust operating business growth and disciplined capital allocation under Greg Abel. Manufacturing revenues rose 15.2% with 25.8% pre-tax earnings growth, driven by both organic and inorganic gains, notably in Precision Castparts and OxyChem. Capital allocation is more active: significant Alphabet purchases, Taylor Morrison acquisition, and $4.5B in share buybacks, all executed with value discipline.
Berkshire Hathaway Inc. reported strong Q2 results, with operating earnings up 16% and revenues reaching $102 billion. BRK.B's valuation has become more attractive, now trading at 1.45x book value, below its 3- and 5-year medians. Management ramped up buybacks to $4.5 billion in Q2, signaling confidence in current share undervaluation.
Berkshire Hathaway is executing a more active investment strategy under CEO Greg Abel, expanding beyond prior conservatism. Q2 saw significant capital deployment: major additions to Alphabet and Delta, announcement of the $6.8B Taylor Morrison acquisition, and $4.4B in buybacks. Operational improvements continued in insurance, BNSF, and BHE. My sum-of-the-parts valuation now shows a 12.7% premium to market price.
Google parent Alphabet is now the third largest holding in Berkshire Hathaway's equity portfolio.
Berkshire Hathaway has upped its bet on the U.S. housing market, and also boosted its stakes in Alphabet and Delta Air Lines.
Berkshire Hathaway's second-quarter 13F filing, due on Friday, is expected to offer investors a clearer picture of how CEO Greg Abel is reshaping the conglomerate's equity portfolio after taking over from Warren Buffett. The filing marks only the second quarterly portfolio disclosure under Abel's leadership and follows an active first quarter in which Berkshire became a net buyer of equities for the first time in years.
Berkshire Hathaway's disciplined underwriting and $177.5B insurance float fuel capital deployment, growth and long-term shareholder value.
Berkshire Hathaway remains a durable, institutionally designed compounding machine, even as Buffett's direct influence wanes. The company trades near 1.49x book value; recent buybacks and capital deployment signal management sees undervaluation despite a challenging macro backdrop. Greg Abel's stewardship will focus on decentralized operations, fortress liquidity, and centralized capital allocation, though repeating Buffett-era alpha is unlikely.
Berkshire Hathaway continues to deliver robust financial performance, with Q2 operating earnings and EPS significantly exceeding expectations. Manufacturing, Service, and Retailing segments drove profit growth, notably through acquisitions and strong demand in industrial and aerospace markets. Insurance underwriting and investment income saw mixed results, but overall float reached a record $177.5 billion, supporting future investment capacity.
Berkshire Hathaway is finally putting its massive cash hoard to work under new CEO Greg Abel, and investors are liking what they see so far.
Berkshire Hathaway Inc (NYSE:BRK.A) shares gained about 2.5% on Monday after the conglomerate reported stronger-than-expected second quarter results and increased its capital deployment under new CEO Greg Abel. Revenue came in at about $101.8 billion, above analyst expectations of $96.52 billion.
CCC Intelligent Solutions, an auto insurance software company, reports bodily insurance claim frequency is up 11% over the past two years and the cost of those claims has jumped 10.3% over the last year and 32% over the last four years. CCC says the increase is not because car crashes are becoming more frequent or more severe, instead pointing to changes in the social environment surrounding injury claims.