Berkshire Hathaway Now Has $72.7 Billion in Cash after $5 Billion Q2 Profit

warren buffetWarren Buffett’s mega-conglomerate Berkshire Hathaway Inc. (NYSE:BRK.B) turned in a huge quarter on Friday, although adjusted results missed Wall Street estimates.

From Bloomberg:

Warren Buffett’s Berkshire Hathaway Inc. said second-quarter profit rose 25 percent on earnings from newly acquired manufacturing businesses and improved results at insurance operations.

Net income climbed to $5 billion from $4.01 billion a year earlier, the Omaha, Nebraska-based company said Friday in a statement. Operating earnings, which exclude some investment results, were $2,803 a share, missing the average $2,911 estimate of three analysts surveyed by Bloomberg.

One problem Berkshire is facing is having too much cash. The company reported stockpiles of $72.7 billion as of June 30, and Berkshire will be under pressure from shareholders to put that money to work. Berkshire doesn’t pay a dividend or do share buybacks, preferring to exclusively generate value through strategic investments and outright acquisitions.

Berkshire shares fell $1.05 (-0.72%) in aftermarket trading on Friday to $144.60 per share. BRK.B has gained 10.3% year-to-date, outpacing the S&P 500′s 7% rise in the same period.

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