Warren Buffett struggles to find bargains in Q2: Berkshire earnings

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Warren Buffett is struggling to find bargains, Berkshire Hathaway's 2nd-quarter earnings show

The famed investor and his team sold $8 billion of stocks on a net basis last quarter, as they dumped close to $13 billion worth of shares, and bought less than $5 billion worth. They also spent only $1.4 billion on stock buybacks last quarter, down from over $4 billion in the. That's likely due to Berkshire's stock price rising in the period, making it a less compelling purchase.

Berkshire's cuts to its stock portfolio and slower pace of repurchases meant its cash pile swelled by 13% to $147 billion in the three-month period ended June 30. That's the second-highest figure it's ever reported, and not far off theWhen the conglomerate's total amount of cash and Treasury bills increases, it generally indicates that Buffett and his compatriots didn't find many deals on the stock market or acquisition front.

Many investors view Buffett's company as a microcosm of the US economy, given it owns a vast number of businesses across many industries. Berkshire's operating earnings rose 7% year-on-year to $10 billion last quarter, as underwriting and investment income from its insurance division surged. Meanwhile, earnings from the BNSF Railway fell, and profits from the energy division were almost flat.in the truck-stop chain to 80% in January.

Buffett and his team have markedly slowed their spending this year. They plowed a record $68 billion into stocks last year, or $34 billion on a net basis. They also acquired Alleghany for $12 billion and repurchased almost $8 billion of stock in 2022. In contrast, Berkshire sold over $18 billion of stock on a net basis during the first six months of this year. It also reduced its net Treasury purchases to about $27 billion last quarter, down from $33 billion in the first quarter.

 

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