Berkshire Hathaway, the conglomerate led by the billionaire Warren Buffett, posted its highest ever quarterly operating profit on Saturday, while gains from stock holdings helped Berkshire swing to an overall profit of nearly $36 billion.
Rising interest rates and dividend payouts, as well as a rebound in performance at the Geico car insurer, have been helping Berkshire’s insurance businesses generate more money, with profit up 38 percent from the second quarter of 2022.
Berkshire cited rising premiums and a reduction in advertising as among the reasons for Geico’s positive results.
That helped offset declines at other businesses including the BNSF railroad, where lower shipments of consumer goods and increased price competition from the trucking industry contributed to a 24 percent drop in overall profit.
Investors closely watch Berkshire because of Mr. Buffett’s reputation as a savvy investor and because results from the conglomerate’s dozens of operating units often mirror broader economic trends.
Persons:
Berkshire Hathaway, Warren Buffett
Locations:
Berkshire