Warren Buffetts' Berkshire Hathaway Inc, just announced a great quarter with operating income coming in at $6.68 billion for the second quarter of 2021, a 21% increase from the previous quarter of $5.51 billion.
By: Allan R. Kirby
Dividend Rate ($0.00 per Quarter).
Yield (0.0%) *Berkshire Hathaway does not provide a dividend.
You can read Berkshires' Form 10-Q, which provides comprehensive details on second-quarter earnings.
Second Quarter 2021 Results
Berkshire Hathaway just reported another good quarter when compared to the last fiscal year. Overall operating earnings increased 21% compared to Q1 2021 and the company continued to buy back shares instead of making any large acquisitions. Warren Buffett clearly seems content with continuing to buy back shares until he can find an acquisition he likes.
Looking at the latest results we see net earnings increased from $26.295 billion to $28.094 billion, which is close to a 7% increase when compared to 2020 second-quarter earnings.
Net Earnings per average equivalent Class B Share was $12.33 compared to $10.88 from fiscal Q2 2020. Operating income was 6,686 billion for Q2 compared to $5,513 in Q1 which is around a 21% increase.
Note: Net earnings per average equivalent Class B share outstanding is equal to one-fifteen-hundredth of the equivalent Class A stock.
Berkshire continues to buy back stock
Warren Buffett continues to use cash to repurchase stock instead of making acquisitions. Approximately $6.0 billion was used in the second quarter to repurchase Berkshire shares bringing the six-month total for this fiscal year to $12.6 billion. However, even though Warren has been aggressively buying back his shares, total cash on hand has not changed much. Its cash position is currently sitting at $144 billion compared to around $145 billion in the first quarter, which is still historically high for the company.
Final Thoughts
Berkshire Hathway is still a good company to invest in over the longer term. The stock has appreciated 23.1% since the beginning of the year and should continue to appreciate over the longer term. Although past returns do not reflect how Berkshire will do in the coming years, its class A and B shares have still historically been a good investment over the longer term. We like this stock however, take your time, do research and see if this is a stock to add to your own portfolio.
About Berkshire
Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B. Additionally Berkshire does not provide a quarterly or yearly dividend.
Berkshire Hathaway ESG Strategy:
Berkshire Hathaway has created a Sustainability Leadership Council (SLC) which is an autonomous group of
representatives from Berkshire Hathaway companies committed to championing the sustainability efforts of their organizations and serving as a resource to other Berkshire Hathaway subsidiaries as they create and execute their respective sustainability strategies. Learn more by downloading here. We always believe it's prudent to take the time and review a companys' ESG strategy before investing.
Stocks to buy is a segment of the MySmallBank.com blog written by Allan R. Kirby, who writes and produces Personal Finance articles and videos.
Disclosure: mysmallbank.com nor the author received any compensation from any securities highlighted in this article. The article is our opinion only and is written to help readers learn more about the stocks mentioned in this article. Consider this as basic information only and utilize professional services and additional sources before making an investment decision. #stockstobuy #stocks, #finance, #money #invest #investing