The quarterly profit of Buffett’s investment company fell 15%

07.08.2017

Based on the results of the second quarter, the investment company of American billionaire Warren Buffett – Berkshire Hathaway reduced net profit by 14.8% to $ 4.262 billion, or $ 2592 per share of class "A", compared to $ 5.001 billion, or $ 3,042 per share, received for the same period last year.

At the same time, revenue in April-June increased to $ 57.518 billion from $ 54.254 billion a year earlier, the investment company said. Meanwhile, the revenues of the unit, which includes rail, energy and utilities, rose to $ 45.709 billion from $ 43.392 billion.

The volume of premiums collected by the insurance division increased to $ 12.367 billion compared to $ 10.799 billion in the second quarter of 2016. Meanwhile, investment income in April-June fell to $ 287 million from $ 640 million a year earlier, according to the accounts.

Analysts polled by FactSet on average estimated the company's profit at $ 2932 per share on revenue of $ 57.6 billion.

The total assets of the company at the end of June was $ 665.590 billion compared to $ 620.854 billion in 2016 (an increase of 7.2%).

The portfolio of shares held by the investment company was estimated at $ 137.113 billion compared to $ 122.032 billion at the end of last year. Almost 62% of this amount was invested in securities of five companies - American Express ($ 12.8 billion), Apple (NASDAQ: AAPL) ($ 19.4 billion), Wells Fargo ($ 27.3 billion), International Business Machines ($ 8.3 billion), and Coca-Cola ($ 17.9 billion).

The book value of Berkshire (assets minus liabilities), as of June 30, was $ 182,816 thousand per share, an increase of 2.7%.

Berkshire's share price since the beginning of this year has risen 11%, which roughly coincides with the rise of the US stock index Standard & Poor's 500.

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