Berkshire Hathaway reported operating earnings of $12.98 billion for the second quarter, up from $11.16 billion a year prior, with notable growth in manufacturing, service, and retailing earnings, which rose 24% to $4.47 billion. Berkshire Hathaway Energy's profits increased by 27% to $891 million, and BNSF railroad earnings grew by 6% to $1.56 billion.
However, the insurance segment faced challenges, with underwriting earnings declining 13% to $1.73 billion and investment income down 9% to $3.06 billion.
CEO Greg Abel, who succeeded Warren Buffett earlier this year, has begun to actively manage the company's cash reserves, repurchasing approximately $4.5 billion of its own shares in the quarter, a significant increase from the $235 million spent in the first quarter.
This move comes as Berkshire's cash pile decreased to $365.5 billion from a record $397.4 billion, indicating a shift towards deploying capital in buybacks and other investments.
Notably, Berkshire became a net buyer of equities for the first time in 14 quarters, with nearly $20 billion in net purchases, including a $10 billion investment in Alphabet, which is now among its five largest equity holdings.
Despite these developments, Berkshire's stock has only risen 3% year-to-date, underperforming the S&P 500's 13% gain, although it has seen a 9% increase over the last three months