Buffett's Berkshire Buoyed By Pandemic Recovery

Warren Buffett's Berkshire Hathaway on Saturday said many of its businesses are enjoying strong recoveries from the early depths of the coronavirus pandemic, fueling rebounds in profits and revenue.

The company Buffett has run since 1965 also signaled the billionaire's confidence in its future by repurchasing US$6 billion of its own shares in the second quarter, even as its stock price regularly set new highs.

Omaha, Nebraska-based Berkshire's manufacturing, service and retailing businesses suffered last year as economic activity plunged, job losses soared and shoppers stayed home.

But now, Berkshire said its BNSF railroad, namesake car dealership and housing units are among many businesses seeing "significant" recoveries despite supply chain disruptions and higher costs, with earnings and revenue in some instances topping pre-pandemic levels.

Another sign of improvement was Berkshire's decision not to repeat a caution in its previous quarterly results that other operating units still faced adverse effects from the pandemic.

Second-quarter operating profit rose 21 percent to US$6.69 billion, or about US$4,424 per Class A share, from US$5.51 billion, or about US$3,463 per share, a year earlier.

Net income rose 7 percent to US$28.1 billion, or US$18,488 per Class A share, bolstered by unrealised gains in Berkshire's US$192 billion of investments in Apple, Bank of America and American Express.

Revenue jumped 22 percent to US$69.1 billion. (Reuters)