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Berkshire Hathaway 2nd Quarter Report


Parsad
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Thanks, Sanjeev.

 

From the literary style and the signature Hamburg wrote it.  BRK's doing relatively well, given the U shaped recovery.  No dramatic rebound from the recession, just better blocking and tackling as with the large cost cutting at Net Jets.   :)

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BRK is rebounding. From end of June till now, the SP500 has recovered about 11%. This should show up in BRK equity portfolio and reduced mark to market losses.

 

The interesting thing I found is that cash is up from Q1 by about 2.5 billion dollars. Sold about 2.7 billion in equities but also bought 3.2 billion in new equities. Had maturing fixed income assets but bought more.

 

Operating earnings are solid at around 3 billion/quarter which gives a run rate of about 12 billion a year.

 

Regarding the economy, looks like all indicators are up. Higher inventory, raw materials, work in process, purchased goods, manufactured goods from Dec 2009. (page 13 ). Paid higher income tax 2.3 billion compared to 1.3 billion at the same period.

 

Gieco is doing great again compared to 2009. ( +350 million in earnings in the first six months ). Marmon is up, Mclane is down, other businesses are up ( what 300%? ). BNI is up compared to 2009 and the price paid is already looking reasonable and it might look like a bargain in a few years.

 

cheers!

Shalab

 

 

 

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