Berger Hathaway's net buyer was $3.8 billion in 2q

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Berger Hathaway's net buyer was $3.8 billion in 2q

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You can see other videos from our team by tapping here. The quarter's net buyer of equities was $3.8 billion in purchases, according to the results released Saturday. It was a net seller in the second quarter of last year. Berkshire came in as the S&P 500 fell 16% in the last quarter. The insurance and railroad businesses posted gains, and the operating profit was $9.2 billion, according to the Omaha, Nebraska-based company. One business flashing potential warning signs is Geico, the company's personal auto insurance unit, said Cathy Seifert, an analyst with CFRA Research. It reported an underwriting loss of $487 million, even as the conglomerate's other insurance lines gained alongside the division's investment income. Seifert said the report as a whole reflected decent top-line growth, still decent demand for various goods and services, offset by higher input costs and volatility in equity markets. Berkshire said that the losses at Geico were due to higher claims due to rising used-car prices and auto parts shortages. The company said policies-in-force declined even as it increased premiums, a potential sign that the business is losing market share as customers hunt for better rates elsewhere. They are in a tough spot right now, Seifert said, adding that the same trends are playing out at other auto insurers but seem to be hitting Geico particularly hard. It is probably a good idea to watch for further deterioration. The same market weakness that is increasing Buffett's buying power is weighing on his company's results, at least on paper. The company reported a net loss of $43.8 billion due to a $53 billion loss in the company's investment portfolio. Berkshire downplays those results as a function of accounting rules, saying they give a misleading picture of the company's actual performance.

Berkshire was a net buyer of 2 Q, by $3.8 billion, or $45.2 billion in 2022, compared to a $16 billion net seller in 2020 -- 21. We think this may continue and does not necessarily signal that Buffett is bearish on his own shares; buybacks have historically been a less priority use of capital. Repurchases of $1 billion in 2Q declined from the 2021 pace of $7 billion a quarter. Net purchases were calculated by subtracting the first-quarter numbers from the first-quarter total. Buffett's appetite for his own stock declined even as he piled into shares elsewhere. In the second quarter, the stock buybacks clocked in at $1 billion, lagging the $3.2 billion in repurchases made at the beginning of the year. The insurance-investment income was $1.91 billion.

In June, Berkshire Hathaway Energy had $870 million in common stock from Vice Chairman Greg Abel, according to the company. The transaction was not previously disclosed. Berkshire made only a measly dent in its cash pile despite the spending spree. The company reported $105.4 billion at the end of June, barely beating the $106 billion mark at the end of the first quarter. The aggressive pace with which Berkshire picked up shares of Occidental Petroleum Corp. has raised questions as to whether Berkshire is looking to make an acquisition of the energy giant. In this quarter, the company didn't provide any insight into its strategy.