Warren Buffett’s company reports 46 per cent jump in 2Q profit on big paper gain on investments

OMAHA, Neb. – Berkshire Hathaway Inc.’s second-quarter profit jumped 46 per cent as Warren Buffett’s company reported big paper gains on the value of its investments and derivative contracts.

On Friday, Berkshire reported net income of $4.54 billion, or $2,763 per Class A share. That’s up from $3.1 billion, or $1,882 per Class A share, last year.

The biggest factor behind the big swing in earnings was the estimated value of Berkshire’s investments and derivatives. This year, those were worth $622 million. Last year, Berkshire recorded a $612 million paper loss on those.

Berkshire’s revenue grew 16 per cent to $44.69 billion as its more than 80 subsidiaries generally performed well.

The three analysts surveyed by FactSet expected Berkshire to report earnings per Class A share of $2,163.63.

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