Warren Buffett’s Berkshire Hathaway Inc. reported on Q2 profit that exceeded expectations. The reading posted higher due to larger underwriting gains from Geico auto insurance, BNSF Railways and energy firms. The net profit leaped 41% posting $6.4 billion. Operating profit excluding some investment results was $2,634 per share versus $2,482 expected by some analysts surveyed by Bloomberg. In the meantime, Berkshire Hathaway Energy Со. added $375 million in gains compared to $279 million last year.
It was NV Energy, the largest energy company in Nevada, that ensured such spurt. Berkshire acquired it in December. Underwriting gains brought by insurance companies came in at $411 million from $530 million a year ago. Geico’s pre-tax earnings climbed 17% to $393 million. In Q2 the profit produced by manufacturing, service sector and retail trade jumped to $1.26 million from $978 million in the first quarter. The group of businesses includes chemical company Lubrizol; Marmon Holdings, a manufacturer of construction materials; and Fruit of the Loom making underwear and other clothing. As of June 30, Berkshire’s stock portfolio was valued at $119.2 billion versus $118.5 in 2013. In June, Warren Buffett exited most of his stake in Graham Holdings Co. after the former publisher of Washington post sold his newspaper to Jeff Bezos, the founder of Amazon.com Inc.
