Berkshire Hathaway headed by legendary investor Warren Buffet has posted record profits for the second quarter. Net profits rocketed 41% mainly driven by investment gains in the railway and energy sectors. Such remarkable performance proves that the sustainable recovery of the global economy is underway after the world financial crisis. The financial statement of Berkshire Hathaway reads that its overall net income grew to $6.4 billion, or $3,889 per Class A share. For the reference, it is up from the $4.54 billion, or $2,763 per Class A share, seen in the same quarter last year. The sky-high profit has hit a fresh record throughout the company’s history. Despite the geopolitical tensions, the cash inflow to Berkshire Hathaway is still robust as it used to be. So, Buffet is quite certain of further gains. As for operating earnings, they can vary greatly from quarter to quarter because they exclude swings in the value of investments and derivatives. Berkshire’s operating earnings increased 11% to $4.3 billion, or $2,634 per Class A share compared to the operating profit of $3.92 billion or $2,384 apiece. Analysts were less upbeat in their early forecast. They had expected the operating earnings to reach $2,482 per share. Besides, Berkshire Hathaway recorded investment income at $1.963 billion in Q2 whereas derivative proceeds were $101 million. Berkshire’s revenue climbed 11% to $49.76 billion from last year’s $44.69 billion.
