Money

How Warren Buffett’s Berkshire achieves record profits

Published

2 years ago

August 6, 2023

ticker NEWS

Berkshire Hathaway, led by billionaire Warren Buffett, reported its highest ever quarterly operating profit, driven by gains from stock holdings and the positive performance of its insurance businesses due to rising interest rates.

The conglomerate recorded a nearly $36 billion overall profit.

The insurance businesses at Berkshire saw a 38% increase in profit, benefiting from rising interest rates and improved results at the Geico car insurer. Additionally, interest and other investment income grew sixfold during the second quarter.

However, the same rising rates had adverse effects on other sectors of Berkshire’s business. Higher costs associated with buying and upgrading homes led to negative results at Clayton Homes and building products businesses, as well as reduced demand for RVs from its Forest River unit, resulting in a 34% decrease in revenue.

The BNSF railroad, one of Berkshire’s largest businesses, also experienced a 24% decline in profit, which was attributed to lower shipments of consumer goods, price competition from truckers, and increased employee wages.

Berkshire demonstrated caution towards high stock prices during the quarter, selling $8 billion more in stocks than it bought and repurchasing less of its own stock. The company ended June with a near-record $147.4 billion in cash.

Analysts noted that the impact of higher interest rates on investment income was offsetting the economic softness caused by the same rates. Despite the challenges, Berkshire’s strong earnings reflect the company’s resilience and ability to adapt to changing market conditions.

Economic trends

Investors closely monitor Berkshire’s performance due to Warren Buffett’s reputation and the company’s ability to reflect broader economic trends through its operating units, which encompass various industries and brands.

As the rally in U.S. equities continued, Berkshire remained cautious, indicating that attractive investment opportunities were limited during the period.

Berkshire Hathaway Energy’s overall profit remained relatively stable at $785 million, but the company faces potential losses related to Oregon wildfires in 2020, which could reach $1.02 billion before taxes, with $608 million not covered by insurance.

Despite a strong quarter, some analysts expressed concerns about the company’s organic growth trends and the need for strategic positioning to achieve stronger growth without more frequent acquisitions.

Money

How to position investments for 2026: Expert advice on market cycles

As 2026 begins, strategic investment positioning and understanding market cycles are crucial for navigating today’s evolving financial landscape.

Published

16 hours ago

January 14, 2026

Harvey Vargas

As 2026 begins, strategic investment positioning and understanding market cycles are crucial for navigating today’s evolving financial landscape.

As 2026 begins, investors are navigating an evolving market landscape. Experts stress that positioning your investments strategically is far more important than trying to predict market movements.

Key factors include focusing on quality companies, maintaining strong cash flow, and diversifying intelligently.

Dale Gillham from Wealth Within Group joins us to break down what defines a major market cycle and why understanding it can shape your investment approach. From identifying inflation-resilient businesses to selectively tapping into growth themes like AI, this discussion covers essential strategies for the year ahead.

We also explore the role of risk management, the importance of an exit strategy, and how emotional decision-making can impact your portfolio. For anyone looking to strengthen their investing education and skills, this episode offers actionable insights to gain an edge in 2026.

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#Investing2026 #MarketCycles #WealthManagement #AIInvesting #FinancialStrategy #RiskManagement #InvestmentTips #TickerNews

Money

Markets in 2026: Fed rates, gold surge, oil tensions & AUD strength

As 2026 begins, markets face economic shifts; gold and silver soar, while energy and currencies impact global investors.

Published

2 days ago

January 13, 2026

Harvey Vargas

As 2026 begins, markets face economic shifts; gold and silver soar, while energy and currencies impact global investors.

As 2026 begins, global markets face a mix of economic shifts and geopolitical tensions shaping currencies, commodities, and interest rates. The Federal Reserve’s next moves are under the microscope, and Zoran Kresovic from Blueberry Markets says understanding these changes is key for investors navigating the year ahead.

Gold and silver are hitting all-time highs, driven by market volatility and economic uncertainty. Kresovic notes that both metals are likely to continue climbing, remaining essential safe-haven assets amid inflation concerns.

Energy markets are also volatile, with crude oil prices rising amid geopolitical tensions. Meanwhile, the Australian dollar is showing strength against the U.S. dollar. Kresovic highlights that these trends in energy and currency markets can ripple across the global economy, making them critical for investors to watch.

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#MarketUpdate #FedRates2026 #GoldPrices #SilverSurge #CrudeOil #AUDUSD #InvestingInsights #TickerNews

Money

Stocks hit record high as Powell faces investigation and Trump proposes credit cap

S&P 500 hits all-time high amid Fed scrutiny; Trump’s credit card cap proposal raises investor concerns over bank profits.

Published

2 days ago

January 13, 2026

Harvey Vargas

S&P 500 hits all-time high amid Fed scrutiny; Trump’s credit card cap proposal raises investor concerns over bank profits.

The S&P 500 reached a new all-time high, with the Nasdaq climbing 0.5% while the Dow Jones held steady. This comes amid news of a criminal investigation into Federal Reserve Chair Jerome Powell. Despite the scrutiny, analysts believe short-term interest rates and inflation are unlikely to be impacted.

Meanwhile, Trump’s proposal to cap credit card rates at 10% for a year sparked concern among investors about potential effects on lending and bank profitability. Major bank stocks reacted sharply, with Citigroup down 3% and Capital One falling 6%.

In commodities, gold futures rose 2%, reflecting fears that political pressure on the Fed could challenge its ability to manage inflation effectively.

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#StockMarket #SP500 #Nasdaq #FederalReserve #JeromePowell #TrumpNews #BankStocks #GoldFutures