Berkshire Hathaway reported that the profit of the company rose by approximately 67 percent during the second quarter. It comes as its insurance business was able to make a strong turnaround. Berkshire Hathaway is owned by Warren Buffett, the business tycoon and billionaire investor.
The operating profit of the company for the quarter increased to $6.9 billion (£5.3 billion) from $4.1 billion that was recorded from the same period of the previous year.
The net income of the firm almost tripled, soaring to $12 billion from $4.3 billion, ending on 30 June with $111.1 billion in cash and cash equivalents.
The insurance underwriting arm of Berkshire Hathaway was able to turn around from the $22 million loss in the second quarter of last year to make $943 million.
The railroad, utilities and energy business of the company also made $1.9 billion from the $1.5 billion in 2017.
Berkshire Hathaway disclosed that it ended June with a $47.2 billion stake in Apple, the newly $1 trillion valued tech goliath.
The company owns an approximately five per cent stake in the firm. Last May, Buffett said that he had so much confidence in the stocks of Apple that he would be willing to acquire “100 per cent” of the shares of the company if he could. Berkshire initially invested in the firm in 2016 and has steadily raised its stake to around 5 percent of the group which is led by Tim Cook.
According to a regulatory filing that was posted last Saturday, the five percent stake of Berkshire Hathaway in Apple is now worth almost $50 billion after the tech giant is proclaimed as the first trillion-dollar company in the United States of America. That is by far the most valuable stake that Berkshire has in any one company.
The company disclosed that its four other largest holdings continued to be ABank of America, American Express, Wells Fargo, and Coca-Cola. It also said that it had reduced its fixed-income holdings — such as its ownership of municipal debt and corporate and mortgage-backed securities, and US and foreign government bonds— by more than $1.2 billion in the quarter.