Berkshire Hathaway - Show me the money

Share prices are at all-time high after the results are out.

What would investors need to know about this stellar quarter results?

If having too much money is ever a problem, then Berkshire is having a humongous problem.

It is currently sitting on a cash pile of a whopping USD 147 billion.

Even though both Buffett and Munger never like holding cash unnecessarily, the amount that Berkshire is holding now is also at its historical high.

Talk about a 21% YoY growth.

Berkshire's latest revenue growth is contributed by insurance premiums earned, interest and dividends, and also its railroad, utilities, and energy business.

And rising interest rates are now enabling Berkshire to earn a hefty return from its cash. The conglomerate held more than $97 billion in short-term Treasury bills.

Berkshire's net income or earnings are notoriously distorted when there is a market downturn.

Due to its holdings of stocks and equities, these investment instruments will be marked to fair value.

As markets have been bullish this time round versus Q2'22, there is a significant change in the net earnings.

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