Berkshire Hathaway profit surges as insurance, other businesses gain
The results from the conglomerate run by billionaire Warren Buffett also reflect a decline in Berkshire’s tax rate after Trump’s corporate tax cuts
New York — Berkshire Hathaway, the conglomerate run by billionaire Warren Buffett, on Saturday said quarterly operating profit rose 67%, as insurance underwriting rebounded and several business units benefited from a growing economy. Results easily topped analyst forecasts. Underwriting profit at the Geico motor insurance unit more than quintupled, the BNSF railroad benefited from demand to ship consumer products, grain, petroleum and steel, and the Berkshire Hathaway Automotive car dealership financed more vehicle purchases. "Good results across the board," said Doug Kass, who runs the hedge fund Seabreeze Partners Management in Palm Beach, Florida. He has previously sold Berkshire shares short, betting on a decline, but is not doing so now. Berkshire also said second-quarter net income nearly tripled, though that reflected a new accounting rule requiring it to report unrealised investment gains with earnings. Buffett says the rule distorts net results and can mislead investors. Op...
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