Berkshire Hathaway Makes $5.1 Billion Bet On Itself

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Berkshire Hathaway  (BRK.A) - Get Report, the conglomerate run by billionaire investor Warren Buffet, released earnings over the weekend. Berkshire Hathaway owns more than 60 companies, including Benjamin Moore, Geico and more, and has a market cap valued at over $500 billion.

The company reported second-quarter earnings of $26.3 billion, a jump of 87% from a year earlier.

Notably, Berkshire Hathaway spent $5.1 billion on stock repurchases in the second quarter, exceeding the value of stock repurchases in all of 2019, and suggesting that Buffett saw an opportunity to buy the stock when it was undervalued.

Berkshire Hathaway struggled in the first quarter amid the pandemic. It sold its entire position in the U.S. airlin2e industry, which was worth about $4 billion.

“It turned out I was wrong about that business because of something that was not in any way the fault of four excellent CEOs. Believe me. No joy of being a CEO of an airline," said Buffett.

On Monday, Berkshire Hathaway was up just over 1%.

While TheStreet's Jim Cramer said in an interview that, overall, Buffett is doing well, Cramer cautioned that "many of the stocks he has have done nothing or gone down."

“He keeps doubling down on pipelines which have been horrendous," Cramer added.

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