Warren Buffett's Berkshire Hathaway Q2 Operating Profit Climbs Over 15%, Cash Hoard Swells To $277B As It Dumps Significant Stake In Apple
Portfolio Pulse from Shanthi Rexaline
Berkshire Hathaway reported a 15.50% decline in Q2 net earnings year-over-year, despite a 15.48% increase in operating earnings. The company continued to offload its stake in Apple, leading to a significant reduction in its core holdings. Berkshire's cash reserves swelled to $277 billion, while its Class A shares have gained 18.21% year-to-date.
August 03, 2024 | 1:14 pm
News sentiment analysis
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NEGATIVE IMPACT
Berkshire Hathaway continued to offload its stake in Apple, reducing its holdings by 37.8% from the previous quarter.
The significant reduction in Berkshire's stake in Apple could signal a lack of confidence in the stock, potentially leading to short-term downward pressure on Apple's share price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
Berkshire Hathaway reduced its stake in Chevron by 4.1% from the previous quarter.
The reduction in Berkshire's stake in Chevron could signal a lack of confidence in the energy sector, potentially leading to short-term downward pressure on CVX's share price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
Berkshire Hathaway's Class A shares have gained 18.21% year-to-date, outperforming the SPDR S&P 500 ETF Trust, which gained 12.83% in the same period.
While Berkshire Hathaway's performance is notable, the broader market as represented by SPY has also shown positive returns. The news is neutral for SPY as it reflects overall market conditions.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Berkshire Hathaway increased its stake in American Express by 1.7% from the previous quarter.
The slight increase in Berkshire's stake in American Express indicates continued confidence in the company, which could positively impact AXP's share price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Berkshire Hathaway increased its stake in Bank of America by 4.9% from the previous quarter.
The increase in Berkshire's stake in Bank of America suggests confidence in the financial sector, potentially leading to positive sentiment and upward pressure on BAC's share price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Berkshire Hathaway reported a 15.50% decline in Q2 net earnings year-over-year, despite a 15.48% increase in operating earnings. The company’s cash reserves swelled to $277 billion.
Despite a decline in net earnings, the increase in operating earnings and significant cash reserves are positive indicators for Berkshire Hathaway. The stock has also outperformed the broader market year-to-date.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Berkshire Hathaway increased its stake in Coca-Cola by 4.1% from the previous quarter.
The increase in Berkshire's stake in Coca-Cola suggests confidence in the consumer staples sector, potentially leading to positive sentiment and upward pressure on KO's share price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60