Warren Buffett was a net seller of stocks in Q2

August 08, 2023 12:45 AM AEST | By Invezz

Warren Buffett was a net seller of stocks in Q2 — Image source: Invezz

Notable figures in Berkshire’s Q2 update

Swung to an overall profit of $35.9 billion versus $43.6 billion of loss a year ago
Operating EPS (Class A) went up 8.0% to $6,928 versus $5,576 expected
Ended the second quarter with $147 billion in cash and cash equivalents
Saw asset base hit a prominent milestone of surpassing $1.0 trillion

Berkshire attributed much of the strength in the recently concluded quarter to an uptick in insurance underwriting and investment income. Still, Cathy Seifert of CFRA Research said today on CNBC’s “Squawk Box Asia”:

There’s firepower within Berkshire to do more deals. That’s where growth is coming. Investors will have to decide whether they’re comfortable with organic growth – it’s pretty modest.

Berkshire repurchased less of its stock in Q2

The multinational conglomerate repurchased $1.4 billion worth of its stock in Q2 – up significantly from $1.0 billion a year ago but down significantly from $4.4 billion in Q1.

The sequential decline realised primarily because Warren Buffett is price sensitive when it comes to buying back shares. Berkshire stock was in an uptrend in the second quarter and is now trading at an all-time high. CFRA’s Seifert added:

I think Berkshire Hathway is going to have to make some more deals to sustain a level of growth that investors are looking for.

Berkshire continued to trim its stake further in Chevron Corp in the second quarter, as per the press release. Buffett was a net seller of stocks – offloading about $8.0 billion worth of them in Q2.

The post Warren Buffett was a net seller of stocks in Q2 appeared first on Invezz.

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