Berkshire Hathaway Q2 Earnings Preview

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Includes: BRK.A, BRK.B
by: Whitney Tilson

Whitney TilsonFrom Whitney Tilson's August 1st letter to the investors in his fund, T2 Partners LLC: Berkshire Hathaway will report second quarter earnings on Friday evening and we’re expecting another blowout quarter thanks to a strong overall economy, higher interest rates (meaning Berkshire earns more on its roughly $40 billion cash hoard), firm insurance pricing and no major super-cat events.

We expect that Berkshire’s non-insurance operating businesses will show more than 30% year-over-year earnings growth and that earnings per share will grow more than 40%, to at least $1,300 (excluding any investment gains or losses) ...we’ll let you know how accurate this forecast proves to be.

If we are anywhere close to correct, the stock is both extremely cheap as well as one of the safest investments we know of.