Warren Buffett Bus Back a Record $5.1 Billion in Berkshire Stock

Covid-19 has impacted famed investor Warren Buffett’s Berkshire Hathaway business, prompting Buffett to buy back a record $5.1 billion worth of Berkshire stock. It was on Saturday that Berkshire Hathaway had announced the record purchase.

The purchases were made in May and June and it is the most ever in a single period for Buffett, nearly double the $2.2 billion the conglomerate bought back in the final quarter of 2019.

Operating profits for Berkshire fell 10% during the second quarter, dropping to $5.51 billion from $6.14 billion in the year-earlier period. The company also had a charge of approximately $10 billion from Precision Castparts, Berkshire’s largest business within its manufacturing segment.

Berkshire reported second-quarter net earnings of $26.3 billion, or $16,314 per Class A share equivalent, from $14.1 billion, or $8,608 per Class A share equivalent, in the year-earlier period.

Operating earnings, which exclude some investment results, fell to $5.5 billion from $6.1 billion in the year prior.

The company had warned that, “the risks and uncertainties resulting from the pandemic that may affect our future earnings, cash flows and financial condition include the nature and duration of the curtailment or closure of our various facilities and the long-term effect on the demand for our products and services.”

Berkshire has also warned that Geico, which it owns, would likely see its underwriting results “negatively affected” for the rest of 2020 due to the coronavirus pandemic. The impact may also flow into the first quarter of next year.

Disclaimer: We have no position in Berkshire Hathaway Inc. Class A (NYSE: BRK.A) and have not been compensated for this article.