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.
The Swiss government has proposed new regulations to tighten its control over big banks, particularly UBS, after the collapse of Credit Suisse. The government's plan includes giving more power to regulators and increasing capital requirements. However, an expert believes these measures will hinder UBS's ability to compete with global banks and may put Switzerland's economy at risk.
UBS, a Swiss bank, has launched a new $2 billion share buyback program. The bank plans to repurchase up to $1 billion of its shares this year, with the aim of exceeding its pre-acquisition levels by 2026. This move follows the completion of a $5.2 billion buyback program in 2022. Share buybacks allow companies to return cash to shareholders and often indicate a positive outlook for the company's stock.
UBS CEO Sergio Ermotti received a $15.9 million compensation package in 2023, after he returned to lead the bank's merger with Credit Suisse. The bank's total executive board compensation increased to $159.5 million, with bonuses being reduced by 14% to $4.5 billion. Despite facing merger-related expenses, UBS has performed well, with its stock price rising since Ermotti's return.
