Profit/Loss Rollercoaster At Berkshire Hathaway

Profits rebounded at Warren Buffett’s conglomerate along with the value of its $353 billion stock portfolio in the second quarter to hit $35.9 billion. Many of the assorted businesses Berkshire Hathaway owns also performed well led by strong results in its core insurance businesses particularly Geico. A year ago, Berkshire recorded a $43.6 billion loss. But Buffett has long said that those bottom-line figures can be misleading because of the big swings in the paper value of its investments. Instead Buffett recommends investors focus on operating earnings. By that measure, Berkshire’s operating earnings grew 6.6% to $10.043 billion. But some of the results at BNSF railroad and Berkshire's housing-related businesses suggest the economy is slowing and rising interest rates are taking a toll.