Berkshire Hathaway reports Q2 results


Berkshire Hathaway (BRK.A, BRK.B): Q2 operating earnings per Class A equivalent share of $2,634 (+10% Y/Y) beats by $149.

Net earnings per Class A equivalent share of $3,889 (+41% Y/Y).

Revenue of $49.76B (+11% Y/Y).

Book value per Class A equivalent share of $142,483 (+3% Q/Q).

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Comments (38)
  • PeakOiler
    , contributor
    Comments (299) | Send Message
     
    That's the equivalent of beating by a penny and a half if earnings were expected to be 25 cents.
    1 Aug 2014, 06:32 PM Reply Like
  • Wayne is a god
    , contributor
    Comments (41) | Send Message
     
    6%
    1 Aug 2014, 07:52 PM Reply Like
  • apacheman15
    , contributor
    Comments (565) | Send Message
     
    What's your point Peak? It's a behemoth non-trendy company that increased earning 10% over the same quarter last year. I'll take that every day of the week. And with $55 billion in cash on hand, look for a MAJOR elephant ( aka " cash flow monster") to be bagged in the next 1-2 years.
    2 Aug 2014, 08:40 AM Reply Like
  • Clayton Rulli
    , contributor
    Comments (3412) | Send Message
     
    better earnings... thats why I dropped Geico
    1 Aug 2014, 06:49 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    Looks good to me. :)
    1 Aug 2014, 07:07 PM Reply Like
  • dgotshalk
    , contributor
    Comments (62) | Send Message
     
    low cost diversified investment.
    dividends invested for you professionally
    dividends undeclared and therefore accumulate tax free
    reasonable inside management salaries
    Win Win to me
    1 Aug 2014, 07:11 PM Reply Like
  • nikkor
    , contributor
    Comments (118) | Send Message
     
    Exactly!
    2 Aug 2014, 02:23 AM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    Great call, Wayne is a god.

     

    You almost nailed book value directly for this quarter.

     

    *runs to see guardians of the galaxy*
    1 Aug 2014, 08:05 PM Reply Like
  • Wayne is a god
    , contributor
    Comments (41) | Send Message
     
    I was thinking 94 but im happy to be wrong. just under 95 is great and I love that 55.5 billion in cash they have
    1 Aug 2014, 08:39 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (7055) | Send Message
     
    Well, after the worst day in months, I am glad (NYSE:BRK.B) did well.
    1 Aug 2014, 08:07 PM Reply Like
  • long_on_oil
    , contributor
    Comments (1363) | Send Message
     
    Based on these figures the new 120% buyback point on the B shares is $114. So the downside risk is now about $13 and probably less than that since the 120% of book has never been used since it went into effect. You gotta love BRK.
    1 Aug 2014, 09:07 PM Reply Like
  • Wayne is a god
    , contributor
    Comments (41) | Send Message
     
    I see a new high coming but if we don't :)
    1 Aug 2014, 09:25 PM Reply Like
  • Mike Serebrennik
    , contributor
    Comments (1230) | Send Message
     
    1.2*BV is not a price floor. The volume of selling can easily overcome a corporate buyback effort.
    1 Aug 2014, 10:34 PM Reply Like
  • Rob1492
    , contributor
    Comments (629) | Send Message
     
    Very true.... But with 49 billion available they can buy a lot of stock.... And the lower the price drops the more accretive it is to those who hold on
    1 Aug 2014, 10:51 PM Reply Like
  • John McCoy
    , contributor
    Comments (300) | Send Message
     
    In most cases that's true Mike, but Berkshire is slightly different. There are a LOT of people that become buyers as soon as they hear that Buffett is buying back shares. When Buffett repurchases, people listen.
    2 Aug 2014, 06:37 PM Reply Like
  • D. Appleton & Company
    , contributor
    Comments (706) | Send Message
     
    Berkshire: The ultimate safe haven stock. What an honor it is to own BRK while Warren is still alive. Enjoy it.
    1 Aug 2014, 10:15 PM Reply Like
  • apacheman15
    , contributor
    Comments (565) | Send Message
     
    This earnings release is terrible news for critics of Berkshire. Hmmmm....what will they attack now? Let me guess. No dividends. Buffett is old. And Munger's glasses are too thick. #hearditallbefore
    2 Aug 2014, 08:43 AM Reply Like
  • buyandhold???
    , contributor
    Comments (907) | Send Message
     
    so what happens to this after buffett dies?
    2 Aug 2014, 10:01 AM Reply Like
  • 510586
    , contributor
    Comments (17) | Send Message
     
    Hopefully, they will conclude that they no longer have the greatest capital allocator of all time, and institute a more aggressive share repurchase plan.
    2 Aug 2014, 10:10 AM Reply Like
  • DanielJRoche
    , contributor
    Comments (468) | Send Message
     
    Seances, don't you read the reports?
    2 Aug 2014, 10:15 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (7055) | Send Message
     
    Supposedly Buffett is mentoring his son, so his son will eventually take over. Buffett also selected a few successful fund managers. I would love to manage all that cash.
    2 Aug 2014, 10:50 AM Reply Like
  • apacheman15
    , contributor
    Comments (565) | Send Message
     
    Buyandhold....the stock will likely lose a few percent when Buffett is no longer at the helm, but it will be a short term thing. The companies fundamentals will not change. They will still have a universe of options ( since it is a conglomerate) to invest their ever growing mountains of cash. Think of other huge market cap companies. Exxon isn't going to but Tesla just like Apple isn't going to buy Wendys. Berkshire could do either since it's a conglomerate and doesn't have to stay within a certain sector to deploy its cash. And they will always have a rock solid balance sheet with MOUNTAINS of cash available waiting for the next investment opportunity. Even long after Buffett is gone.
    2 Aug 2014, 02:40 PM Reply Like
  • John McCoy
    , contributor
    Comments (300) | Send Message
     
    Honestly, I wouldn't be suprised if Buffett leaves a massive buyback plan in place to take advantage of whatever dip his leaving/passing creates. That would be just like him!
    2 Aug 2014, 06:40 PM Reply Like
  • DanielJRoche
    , contributor
    Comments (468) | Send Message
     
    Howard isn't "taking over." He's not his old man, and Warren, who has spoken out many many times about corporate nepotism, knows it. Warren hasn't tipped his hand, and he probably won't until he passes away and it's time to open the envelopes in the top drawer of his desk. The common understanding right now seems to be that Berkshire will be run more or less by committee, with Warren's job split up into different parts. Howard is expected to have some sort of legacy non-acting director type title, much like several of Henry's survivors at Ford have had all these years, and he'll likely be focusing on maintaining the company's unique culture. Others in the organization (Todd Wechsler, Ted Combs, or Tracy Britt Cool) may allocate capital, while someone like Matt Rose from BNSF would oversee operations, and then perhaps there might be some executive they're all answerable to, like Ajit Jain. There are at most perhaps two or three people in the world not named Warren Buffett or Charlie Munger who know what the succession plan will look like, and they're not talking. But we're safe assuming the plan will be extremely clever and practical. Berkshire, it should be noted, has a very deep bench comprised of top-tier executives from across corporate America, so I think that no matter what happens the company will be in good hands 20 years from now.
    3 Aug 2014, 01:33 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    Thank you. There is so much misinformation about this.

     

    People just assume Howard is "taking over" the business. That's just utter nonsense. Being non-executive chairman will help defend the culture of the organization.
    3 Aug 2014, 06:30 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    I hope when buffett dies at least a buyback is triggered and some shares get pulled off the market. That will help the shareholders who stay, you and me.
    3 Aug 2014, 06:31 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11220) | Send Message
     
    Buffett's death won't even be a speed bump for this corporation. As we saw with Apple, the leader's demise means nothing to a well organized, profitable enterprise.
    2 Aug 2014, 10:17 AM Reply Like
  • John McCoy
    , contributor
    Comments (300) | Send Message
     
    Apple is a great example, as is Walmart (Sam Walton), or McDonalds (Ray Kroc). All of these great companies continued to grow and excel long after their revered founders passed away, and so will Berkshire.
    2 Aug 2014, 06:42 PM Reply Like
  • 11146471
    , contributor
    Comments (1373) | Send Message
     
    3% increase in EPS Q2013/Q2014. About 12% FY2013/FY2014, tax free. You got to love it!
    2 Aug 2014, 10:39 AM Reply Like
  • Cesc
    , contributor
    Comments (171) | Send Message
     
    Being Berkshire's sharehoder is a win-win almost under any situation; market sell-off (Warren and Charlie would shot the "elephant gun"), stock sell off (that would pull the trigger for buying back a ton of shares), rising interest rates (Berkshire's massive float is an interest free loan), you name it.....

     

    Disc: Long BRK.B
    2 Aug 2014, 01:03 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    I'm a new follower of yours
    4 Aug 2014, 10:40 AM Reply Like
  • CassandraSees
    , contributor
    Comments (655) | Send Message
     
    Warren is carefully grooming several people to take over the reins when he finally moves on... I think that he is intelligent enough to choose wisely and to put in a series of checks and balances. So much of what we value in Warren is trust and it has been carefully earned by his actions over the years. Long term thinking with this stock.
    2 Aug 2014, 01:58 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    What I mainly look at is the businesses, and I see some fantastic businesses under the BH umbrella.
    3 Aug 2014, 06:33 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11220) | Send Message
     
    I'd love to see Warren announce a tax-favorable purchase of (NYSE:KMB) or (NYSE:GIS).
    2 Aug 2014, 05:20 PM Reply Like
  • John McCoy
    , contributor
    Comments (300) | Send Message
     
    I've been thinking DE, which is an iconic American company with a wide moat in most of it's business segments, and is currently on sale at about 9 x earnings due to short term headwinds. I' looking to go long DE myself, but I would gladly welcome it into my portfolio as part of the BRK family too.
    2 Aug 2014, 06:47 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    Charlie Munger my hero, has noted, "Time is the friend of a wonderful business."

     

    Long BRK.A
    3 Aug 2014, 10:36 PM Reply Like
  • PeteCal
    , contributor
    Comments (90) | Send Message
     
    I bought 5 shares of BRK in 1992
    I have been through the good and the bad.
    My gut tells me the "replacement team" has been running the company (with WB approval and oversight) for the last few years.
    4 Aug 2014, 09:27 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (7055) | Send Message
     
    Class A (NYSE:BRK.A) or Class B (NYSE:BRK.B)? I assume Class A, as that would be about $600,000. Plus, you get a much higher voting power than Class B shares. I wish I had $600,000 to spare.
    4 Aug 2014, 10:05 AM Reply Like
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