Warren Buffett's industrial and insurance conglomerate ended the second quarter with a record high of $ 122 billion in cash, according to an income report released on Saturday.
Buffett has said he wants to make a big acquisition, but in a letter to shareholders this year said prices "are soaring for companies that have decent long-term prospects." Buffett said last year that his investment philosophy is to stick to "big," easy "decisions and eschew activity."
"Because of the diversity of their business, Berkshire is a fantastic watch for what's happening in the economy," said Trip Miller, managing partner of Gullane Capital. "Hopefully, cash will benefit him and his partners when the market suffers from a setback . "
The company had slightly lower year-over-year operating revenues, in part due to lower insurance hedge revenues. In the quarter ended June, it posted $ 6.1
4 billion in operating revenues, versus $ 6.89 billion in the same quarter last year.
Net earnings were $ 14 billion.
Berkshire ( BERK ) also revealed that it did not receive Q1 and Q2 accounts from Kraft Heinz, which the company considers to be its "most significant investment." Kraft provided the 10-K filing 2018 with the U.S. Securities and Exchange Commission, which led Berkshire to reduce the book value of the Kraft investment with $ 34 million.
Kraft is eligible to release earnings on August 8, the first since it revealed a more than $ 15 billion write-down on its Kraft and Oscar Mayer brands last year.
In May, Buffett called the news of Kraft that did not disclose any financial documents "very unusual" and suggested it may have been due to a dispute the company had with its auditor, PricewaterhouseCoopers.
Berkshire also repurchased $ 442 million in stock last quarter, a decline from $ 1.7 billion purchased in the first quarter.
Previously, the company did not allow share repurchases. The board changed a rule last year to allow the company to buy back billions of dollars, a practice that has been criticized by some analysts as inflating stock prices. During the first six months of this year, the company repurchased $ 2.1 billion.
Warren Buffet is well known as an investment guru who recommends diversification, and Berkshire certainly does not have its eggs all in one basket. As of June 30, Berkshire had a $ 18.7 billion stake in American Express stock, $ 50.5 billion in Apple, $ 27.6 billion in Bank of America, $ 20.4 billion in Coca-Cola and $ 20 billion, $ 5 billion in Wells Fargo.