Berkshire Hathaway, the investment company of the American billionaire Warren Buffett, has seen its profit fall sharply, but at the same time the cash reserves are rising to record highs.
In the second quarter, operating income fell 11 percent to $ 6.1 billion ($ 5.5 billion), the company announced at its headquarters in Omaha (Nebraska). This is a result of the slightly weaker US economy and setbacks especially at the insurance group GEICO, a ‘daughter’ of Berkshire Hathaway.
Nevertheless, net profit increased by 17 percent from 12 to more than 14 billion dollars (12.7 billion euros). However, in the opinion of stock market guru Buffett himself, this net surplus is an accounting figure that is now relatively small and not a good indicator. In the ‘cash register’ of Berkshire Hathaway, however, there is no sign of disappointments. On the contrary, the investment vehicle of the 88-year-old Buffet had approximately 122 billion dollars (almost 110 billion euros) in cash at the end of June. This is more than the record of the company from 2017. What Buffett wants to do with all that cash is still unclear. He would be looking for a big deal, but haven’t found it yet.