Berkshire Hathaway said second-quarter profit rose 41 percent to a record on investment gains.
Net income climbed to $6.4 billion, or $3,889 a share, from $4.54 billion, or $2,763, a year earlier, the Omaha, Neb.- based company said Friday in a statement. Operating earnings, which exclude some investment results, were $2,634 a share, beating the $2,482 estimate of three analysts surveyed by Bloomberg.
A rebounding U.S. economy has boosted the value of Berkshire’s stock portfolio and helped propel growth at the dozens of operating business that Warren Buffett, 83, acquired during his four-decade tenure as chairman and chief executive officer. The subsidiaries include insurers, manufacturers, retailers, utilities and one of the country’s largest railroads, BNSF. Berkshire also owns The Buffalo News.
Class A shares have risen 6.4 percent this year in New York, beating the 4.2 percent gain in the Standard & Poor’s 500 Index.
Buffett has also been adding to Berkshire’s stable of operating businesses. Last year, the energy unit bought Nevada’s largest electric utility for $5.6 billion, and Buffett teamed up with buyout firm 3G Capital to take HJ Heinz Co. private.
The Heinz deal gave Berkshire half the equity in the ketchup maker and preferred shares that pay $720 million in dividends annually.
Since the takeover was completed in June 2013, Heinz has eliminated thousands of jobs, announced factory closures and offered buyouts to staff at its Pittsburgh headquarters.