Berkshire Hathaway, the business conglomerate with which American billionaire Warren Buffett operates (considered, at 92, the fifth largest fortune in the world, according to Forbes), posted its highest operating profit in a quarter. Between April and June of this year, the tycoon earned almost 36,000 million dollars, more than 32,600 million euros, from his multiple investments, especially significant benefits in the insurance business.
Buffett’s company benefited from the rise in interest rates and, especially, from the Geico car insurer, which allowed the billionaire to increase his profits by 38% compared to the profits obtained in the same first quarter of 2022.
High interest rates, however, also caused Berkshire to take a hit in its real estate business. According to the Reuters agency, the real estate and mobile home company Clayton Homes was one of the main victims. Also the Forest River leisure vehicle unit, which registered a 34% drop in its business in the second quarter of the year.
The line specialized in the railway business, BNSF, one of the largest divisions of Berkshire, also saw its profits fall 24% due, mainly, to the collapse of the shipments of consumer goods, the price competition of the carriers and the higher salaries that it has had to pay to its employees.
The market is watching Berkshire’s moves. This week Buffett’s company decided to acquire US Treasury bonds for a total of 10,000 million dollars, an operation that occurred immediately after the Fitch agency cut the country’s sovereign rating from AA from AAA.
The Omaha, Nebraska-based company also has industrial divisions, in addition to stock investments, along with well-known brands such as Dairy Queen, Duracell, Fruit of the Loom and See’s Candies.
Berkshire has, at the end of June 2023, practically record cash of 147.4 billion dollars, which places the company in a privileged position for future operations.
