Berkshire Hathaway’s (NYSE:BRK.A) cash pile stood at a record $144 billion U.S. at the end of this year’s second quarter despite the company’s massive share buyback program.
The holding company lead by legendary investor Warren Buffett reported operating earnings of $6.69 billion U.S. in the second quarter, up 21% from $5.51 billion U.S. in the same period a year ago, according to its latest earnings report.
Berkshire Hathaway’s myriad of businesses, which include Geico insurance and the Dairy Queen restaurant chain as well as energy companies and railroads, have benefited from the economic reopening.
Overall earnings, which reflect Berkshire’s fluctuating equity investments, increased 6.8% year-over-year to $28 billion U.S. in the second quarter.
Chairman and Chief Executive Warren Buffett kept buying back Berkshire Hathaway shares aggressively instead of making sizable acquisitions. The company repurchased $6 billion U.S. of its own stock in the second quarter, bringing the total in this year’s first half to $12.6 billion U.S.
Berkshire Hathaway bought back a record $24.7 billion U.S. of its own stock in 2020.
The second quarter results came as the conglomerate’s stock erased all its 2020 losses and hit a record high in the April to June period. Berkshire Hathaway’s Class B stock is up 23% year-to-date.
Earnings for railroads, utilities and its energy companies jumped more than 27% from a year ago in the period to $2.26 billion U.S., Berkshire said. The conglomerate’s other businesses, including homebuilders and a paint-maker, also got a boost in the second quarter.
At the height of the COVID-19 pandemic, Berkshire Hathaway experienced a drastic slowdown with its operating income falling 10% in the second quarter of 2020 and tumbling 30% in the third quarter.
In a news release, Berkshire Hathaway said risks from the pandemic remain and could impact its results in the future. The holding company sold $1.1 billion U.S. more stock than it bought in the second quarter.
