Shares in famed investor Warren Buffett’s conglomerate hit a record high as its insurance operations rebounded.
Berkshire Hathaway, which is based in Nebraska, rallied yesterday after the investment giant reported on Saturday that it had swung to a profit of £31.3billion between April and June – from a loss of £34billion in the same period the year before.
The stock was up more than 3 per cent.
Investors closely watch Berkshire because of Buffett’s reputation as a savvy investor. Results from its dozens of operating arms also mirror broader economic trends.
Those arms include Berkshire Energy, several industrial companies, and brands like Dairy Queen, Duracell, Fruit of the Loom and See’s Candies.
Investing genius: Warren Buffett (pictured), the chairman and chief exec of Berkshire, turns 93 on August 30. He is worth £92bn and is the world’s sixth-richest person
But the company has also been clutching near-record levels of cash at more than £115billion, suggesting a hesitation from Buffet to plug money into the current stock market.
The results came days after rating agency Fitch stripped the US of its prized triple A rating.
Analysts cited Washington’s repeated stand-offs over the debt ceiling, which drove the Treasury’s cash balances to dangerously low levels.
But speaking over the weekend Buffet – who has run the company since 1965 and which is valued around £617billion – shrugged off concerns over the US economy.
The 92-year-old told CNBC: ‘There are some things people shouldn’t worry about. This Fitch downgrade is one.
‘The dollar is the reserve currency of the world, and everybody knows it.’
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