Berkshire Hathaway Q2 2023 Earnings: Shares hit all-time-high after operating profits hit $10 billion!
Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services.
Apart from the above business segments, its earnings from its investment holdings in companies like Apple, Bank of America, American Express and Coca Cola spearhead a majority chunk of its total revenue and earnings.
Apple is by far Berkshire Hathaway's largest stock holding at $177.6 billion as of June 30, 2023, accounting for 46% of its stock portfolio and for 5.8% of Apple's outstanding shares. Berkshire Hathaway's second-largest holding is Bank of America, with a stake valued at $29.6 billion as of the middle of 2023, accounting for 8% of the portfolio.
Berkshire Hathaway Q2 2023: Key Highlights
- Operating profit rose above $10 billion for the first time
- During the day (Aug 8, 2023), Berkshire Hathaway stock reached the level of $555,800, surpassing the previous high of $544,000 hit on March 28, 2022
- The company’s cash stake rose to $147.4 billion in the quarter
Berkshire Hathaway stock reached the level of $555,800, surpassing the previous high of $544,000 hit on March 28, 2022. As on Aug 8, 2023 its share price saw a 3.43% rise at $551,920. In 2023 so far, Berkshire Hathaway shares have rallied 18%. This was after the company reported its strong quarterly earnings for Q2 2023. Its quarterly operating profit rose above $10 billion for the first time.
For more detailed analysis of Berkshire Hathaway’s share price and financial performance, click here.
Berkshire Hathaway Q2 2023: Total Revenue
The company reported a 21% increase in its total revenue YoY this quarter to $92.5 billion. This strong revenue growth is supported by insurance premiums earned, interest, dividend and other investment income as well as railroad, utility and energy operations revenue. Insurance, corporate and others contributed 25.6% of total revenue, followed by manufacturing which contributed 20.6% of total revenue.
| Q2 2022 | Q2 2023 | YoY % change | |
| Total Revenue | $76.2 billion | $92.5 billion | 21.39% |
Berkshire Hathaway Q2 2023: Operating Profit
The company reported an all-time-high operating profit of $10.04 billion for the second quarter, rising from $9.4 billion from the same period last year. Rising interest rates boosted profit from fixed-income investments as well as investment gains in Apple Inc.
| Q2 2022 | Q2 2023 | YoY % change | |
| Operating Profit | $9.42 billion | $10.04 billion | 6.65% |
Berkshire Hathaway Q2 2023: Investment Income
Berkshire owned $177.6 billion of the Apple shares at the end of June and the 17.6% rally in Apple share price during the quarter increased the value. Apple stock has jumped around 40% this year so far and touched a market capitalisation of $3 trillion this year. As a result, the company saw a rise in its investment income.
| Q2 2022 | Q2 2023 | |
| Investment Income | -$53 billion | $25.9 billion |
Berkshire Hathaway: Top Holdings
| Berkshire’s Top Investments | YTD | 1-year | 5-year |
| Apple Inc | 43% | 8.48% | 244.74% |
| Bank of America | -4.86% | -4.81% | 2.21% |
| American Express | 13.49% | 6.15% | 64.36% |
| Coca Cola Co. | -2.80% | -2.83% | 32.79% |
| Chevron Corp New | -8.10% | 4.22% | 29.63% |
Berkshire Hathaway Q2 2023 Historical Share Price Performance
| 1 month | 6 months | 1-year | 5-years |
| 6.73% | 17.93% | 25.67% | 76.90% |
(As on Aug 8, 2023)