Key Stats for Berkshire Hathaway Stock
- Price change for Berkshire Hathaway stock in last 1 year: 14%
- $BRK.A Stock Price as of Aug. 10: $793,815
- 52-Week High: $806,103
- $BRK.A Stock Price Target: $774,712
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What Happened?
Berkshire Hathaway (BRK.A) stock climbed almost 2% after the company posted strong Q2 results over the weekend.
- Operating earnings jumped 16% to $12.98 billion, up from $11.16 billion a year ago, as gains in energy, railroads, and manufacturing outweighed a softer insurance quarter.
- The standout numbers came from manufacturing, service, and retailing, where earnings surged 24% to $4.47 billion.
- Berkshire Hathaway Energy did even better, with profit up 27% to $891 million.
- The BNSF railroad business added a 6% increase to $1.56 billion.
- Insurance was the weak link. Underwriting earnings fell 13% to $1.73 billion, and investment income within the insurance business dropped 9% to $3.06 billion.
Beyond the headline numbers, the bigger story is what CEO Greg Abel is doing with Berkshire’s massive cash pile. The company bought back about $4.5 billion of its own stock during the quarter, a sharp jump from just $235 million in buybacks during the first three months of the year.
Berkshire also became a net buyer of stocks for the first time in 14 consecutive quarters, purchasing nearly $20 billion in equities.
That spending, combined with the completed acquisition of Taylor Morrison, helped bring Berkshire’s cash down to $365.5 billion from a record $397.4 billion the previous quarter.
Alphabet has now joined Berkshire’s five largest equity holdings, alongside longtime positions in American Express, Apple, Bank of America, and Coca-Cola. The $10 billion Alphabet stake was disclosed earlier this year, with Warren Buffett saying he made the investment after talking it over with Abel.
On the financial side, revenue rose 10% year over year to $101.8 billion, beating estimates by nearly 7%. Shareholders’ equity reached $750.2 billion, up more than 4% from the end of last year. Berkshire’s insurance float, the pool of premium money it can invest, grew to about $177.5 billion.
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What the Market Is Telling Us About Berkshire Hathaway Stock
The gain in Berkshire Hathaway stock shows investors like what they’re seeing: real operating strength paired with a management team finally willing to spend some of that enormous cash pile.
For a while, shareholders had been frustrated watching Buffett sit on hundreds of billions of dollars in cash while the broader market ran higher without Berkshire keeping pace.
Now, with Abel stepping into more buybacks, fresh equity purchases, and bigger acquisitions like Taylor Morrison, the market seems to be rewarding a shift toward more active capital deployment.
Still, with Berkshire Hathaway stock up just 6% this year against the S&P 500’s 13% gain, there’s a clear gap left to close, even as recent momentum, up 10% over three months, suggests investors are warming back up to the stock.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
