Warren Buffett: Berkshire Hathaway increases profits significantly

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Warren Buffett playing golf in Idaho (July 2021): His investment holding company is again delivering high profits

Photo: KEVIN DIETSCH / Getty Images via AFP

At the very beginning of the corona crisis, Warren Buffett was also hit hard: In the first quarter of 2020, his investment company Berkshire Hathaway suffered a loss of almost $ 50 billion.

But no matter how deep the share prices worldwide fell back then, they recovered quickly and reached one high after the other.

This recovery from the corona crisis has now also helped Berkshire Hathaway to significantly increase profits in the second quarter of 2021. In the three months to the end of June, the operating result increased compared to the same period last year by a good 21 percent to 6.7 billion dollars, as the conglomerate announced. Berkshire Hathaway also put about another six billion dollars into buying back its own shares. In the first half of 2021, the company said it spent a total of $ 12.6 billion on this type of course maintenance.

Buffets Holding can afford it.

Even though cash on hand was down 1.4 billion from the previous quarter, it still had around $ 144 billion in cash at the end of the quarter.

The financial markets have been waiting for a really big deal from the 90-year-old stock market legend for years, but Buffett is struggling to find suitable targets for investments and acquisitions in view of the high valuations.

The star investor has been increasingly using Berkshire Hathaway's enormous cash reserves for share buybacks since the end of 2019.

Berkshire Hathaway owns around 90 companies, plus various blocks of shares in large listed corporations such as Bank of America, Coca-Cola and Apple.

fdi / Reuters