Bookmark and Share

Berkshire Hathaway Q2 Earnings Drop (BRK.A)

Warren Buffett’s investment company Berkshire Hathaway Inc. (NYSE: BRK.A) reported a decline in its second-quarter earnings due to a loss on its derivative holdings.

BRK.A’s financial and energy businesses use derivatives to speculate on price movement . However, the bets made by the investment company resulted in losses of more than a billion dollars in the second quarter of 2012.

Berkshire Hathaway reported net earnings of $3.1 billion for the second quarter, compared to $3.4 billion reported for the same period in the previous year.

Operating earnings for the second quarter, which exclude some investment and derivative gains, were $3.7 billion, compared to $2.7 billion reported for the same period in the previous year.

Berkshire’s earnings from its insurance underwriting business came in at $619 million. BRK.A’s Railroads, Utilities and Energy segment also saw improved results.

During the second quarter of 2012, the company bought $1.8 billion of stocks, while it sold $3 billion of stocks.

During the first six months of 2012, Berkshire bought $5.2 billion of stocks. The company had bought 7 million shares of Wal-Mart Stores Inc. (NYSE: WMT) in the first quarter. The investment company bought 10 million shares of Wells Fargo (NYSE: WFC) during the first quarter, and 10 million shares of General Motors Company (NYSE: GM) during the first quarter.

Berkshire’s Class A shares rose 1.73% to finish at $128,479 on Friday. The company’s Class B shares rose 1.78% to finish at $85.58 on Friday.


Leave a Reply




You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

All stories in are for informational purposes only. This is NOT a stock recommendation. This story is a daily light analysis featuring a stock with insider buying. With some caveats, insiders purchase a stock because they think the stock is going up. There are other factors to consider such as size of the transaction relative to their compensation and net worth. Sometimes, insiders might be propping a stock price up for future financing. Sometimes, the amount of insider buying are misread or misreported. Each month, DailyStocks releases a a summary of the stocks with insider buying. Sign up for the free monthly newsletter at . About is the place where you can find stories about stocks with insider buying, where you can educate yourself about stock market investing, and where you can perform the stock search engine analysis – you enter a stock symbol, and you get a resulting page of stock ticker indexed links so that you do not have to type the stock symbol each time.