Berkshire Hathaway's stock rose after reporting strong earnings and record cash reserves. Operating earnings surged 39%, driven by increased insurance underwriting earnings, especially from Geico. The company now holds $189 billion in cash, as it struggles to find suitable acquisitions. Despite outperforming the S&P 500 this year, analysts remain positive on Berkshire's prospects, citing its strong earnings and potential for growth in data analytics.
Despite strong earnings and record cash levels, Berkshire Hathaway's stock prices experienced a downturn. Class A shares fell 2.2% and class B shares closed at $409.14. Analysts speculate that the optimistic earnings outlook is already reflected in the current share price. In his annual letter, Warren Buffett anticipates that Berkshire's performance will exceed the average company but will be influenced by its growing size. The company aims to acquire businesses that contribute significantly and avoid substantial capital losses.
