Core Viewpoint - Warren Buffett plans to step down as CEO of Berkshire Hathaway at the end of the year, but investor interest in his stock picks remains high [1][12] Group 1: Stock Purchases and Sales - Investors will learn about the stocks Buffett bought and didn't buy later this month, with the 13F regulatory filing typically submitted in mid-August [2] - There are many stocks that Buffett likely did not buy in Q2 due to high valuations, such as Palantir Technologies, which has a forward price-to-earnings ratio of around 278 [4] - The likelihood of Buffett initiating new positions in stocks he recently exited, like Citigroup and Nu Holdings, is considered very low [5] - Berkshire's 10Q filing indicated a $5 billion impairment on its investment in Kraft Heinz, suggesting it is improbable that Buffett would invest more in a stock that has lost significant value [6] - Berkshire's holdings in American Express remained unchanged at 151.6 million shares, indicating no significant new purchases [7] Group 2: Stock Buybacks - A notable stock that Buffett did not buy in Q2 is Berkshire Hathaway itself, as there were no share repurchases during the first half of 2025 [8] - Buffett's buyback program allows for share repurchases when the price is below intrinsic value, but concerns about valuation have likely influenced his decision not to repurchase shares [9] - The introduction of a 1% excise tax on stock buybacks in 2023 may also contribute to Buffett's reluctance to repurchase shares [10] Group 3: Future Outlook - Despite concerns about Buffett stepping down, he remains confident in his successor, Greg Abel, and believes Berkshire's prospects will improve under his leadership [12] - The stock's valuation may appear high, but long-term growth prospects for Berkshire are considered favorable [11]

Core Insights - Berkshire Hathaway Inc. reported second-quarter 2025 operating earnings of $11.2 billion, a decrease of 3.8% year over year, primarily due to lower earnings in insurance underwriting and other segments, although offset by higher earnings in insurance-investment income, BNSF, and Berkshire Hathaway Energy Company [1][8] Revenue and Expenses - Total revenues declined by 1.2% year over year to $92.5 billion, driven by lower revenues in Insurance and Other, as well as Railroad, Utilities, and Energy [2] - Costs and expenses decreased by 0.3% year over year to $79.4 billion, attributed to a decline in insurance losses, cost of sales and services, and interest expenses, which was lower than the estimated $97.3 billion [2] Segment Performance - Insurance and Other segment revenues fell by 1.2% year over year to $80.4 billion, impacted by lower sales and service revenues, but partially offset by higher insurance premiums and investment income [3] - Insurance underwriting earnings decreased by 12% year over year to $2 billion [3][8] - Railroad, Utilities, and Energy operating revenues decreased by 0.9% year over year to $12.1 billion, primarily due to lower freight rail transportation revenues, although pre-tax earnings from the Railroad increased by 11.5% to $1.8 billion due to lower operating expenses [4] - Total revenues in Manufacturing, Service, and Retailing decreased by 3.4% year over year to $53.4 billion, while pre-tax earnings increased by 4.7% to $4.6 billion [5] Financial Position - As of June 30, 2025, consolidated shareholders' equity was $670.3 billion, up 2.8% from December 31, 2024, with cash and cash equivalents at $96.2 billion, doubling from the end of 2024 [6] - Cash flow from operating activities totaled $21 billion in the reported quarter, down 13.1% from the previous year [6]

Core Viewpoint - Berkshire Hathaway stock is currently reasonably valued, making it a potential investment opportunity for long-term wealth building [1][4]. Group 1: Company Performance - Berkshire Hathaway has achieved an impressive 5,500,000% increase in value over 60 years, averaging nearly 20% annually, compared to the S&P 500's 39,000% gain at an average of 10.4% annually [2]. - The company's recent forward-looking price-to-earnings (P/E) ratio is 23.6, slightly above its five-year average of 21.0, and its price-to-sales ratio is 2.5, above the five-year average of 2.2, indicating it is not a screaming buy but still reasonable for long-term investors [4]. Group 2: Investment Portfolio - Investing in Berkshire provides exposure to a diverse range of businesses, including GEICO, Benjamin Moore, See's Candies, and BNSF railroad, as well as a significant stock portfolio with major positions in companies like Apple, American Express, Coca-Cola, and Bank of America [5]. Group 3: Company Structure and Future - Berkshire Hathaway is built to last, with substantial value in resilient industries such as energy, insurance, and transportation. The transition of leadership from Warren Buffett to Greg Abel is planned, with Abel being supported by capable investing lieutenants [6]. - The future of Berkshire may differ from its past, but it remains promising, with the potential for dividends if excess cash becomes available [7].

Core Viewpoint - Domino's Pizza is positioned to thrive despite the current trade policy environment, with no significant impact from tariffs noted in recent earnings calls [4][6]. Company Overview - Domino's Pizza operates over 21,300 locations in more than 90 global markets, making it the largest pizza company in the world [8]. - The company has a robust supply chain, with its own dough manufacturing facilities in the U.S. and Canada, and relies on a limited number of suppliers for key ingredients like cheese and meat [5]. Financial Performance - Over the past decade, Domino's stock has more than quadrupled, outperforming the S&P 500 with an approximate gain of 11% in 2025 [8]. - In Q2, the company added 178 stores globally, with 148 of those in international markets, indicating strong growth and expansion [9]. - Operating income increased by 14.8%, showcasing the company's financial resilience and growth potential [9]. Market Position - The company benefits from a significant advertising budget and a competitive advantage in its supply chain, which positions it well for sustained growth [7]. - Budget-conscious consumers may turn to Domino's for affordable dining options, potentially increasing sales as they cut back on more expensive restaurants [6]. Investment Interest - Warren Buffett's Berkshire Hathaway initiated a position in Domino's Pizza in Q3 2024 and increased its stake to 7.7% by the end of Q1 2025, highlighting investor confidence in the company [10][11].

Core Insights - Berkshire Hathaway, led by Warren Buffett, has proven to be a durable investment vehicle, significantly increasing wealth for shareholders over the years [1] - The stock has shown impressive performance, with an initial investment of $1,000 in July 2020 now worth $2,426, effectively doubling the investment [2] - The company operates as a dual business model, combining a robust insurance conglomerate, primarily through Geico, with a diverse portfolio of investments in fully owned businesses and publicly traded companies [4] Investment Portfolio - Berkshire's stock portfolio includes well-known companies across various sectors, such as Apple, American Express, and Coca-Cola, making it familiar to most investors [5] - The investment strategy focuses on long-term holdings, with significant positions in companies like American Express dating back to 1964 and Coca-Cola since 1984, showcasing a commitment to buy-and-hold investing [6] Portfolio Management - Not all investments have performed well, with some like Kraft Heinz underperforming; however, Berkshire is willing to sell underperforming stocks relatively quickly [7] - The overall strong performance of Berkshire Hathaway is a key reason for Buffett's reputation as a celebrated investor, making it a worthy consideration for potential buyers [8]

The S&P 500 currently trades at an expensive valuation that has historically signaled trouble for investors. Warren Buffett's Berkshire Hathaway (BRK.A -1.27%) (BRK.B 0.18%) held $344 billion in cash and equivalents in the second quarter, just shy of the $348 billion it reported at the end of the previous period. The company was also a net seller of stocks for the 11th straight quarter. History says the stock market is headed lower in the next one, two, and three years The cyclically adjusted price-to-earni ...

Core Viewpoint - Warren Buffett, CEO of Berkshire Hathaway, has been a net seller of stocks for 11 consecutive quarters, raising concerns about the current market valuation and investment opportunities [4][9][10]. Group 1: Berkshire Hathaway's Recent Performance - In the second quarter, Berkshire Hathaway reported a cash flow statement indicating $3.909 billion spent on stock purchases, an increase from $3.183 billion in the previous quarter, while $6.915 billion was sold, up from $4.677 billion [8]. - Over the past 11 quarters, Buffett has sold $177.431 billion more in stocks than purchased, signaling a significant warning to Wall Street about market conditions [9]. - The company's cash reserves have grown to over $344 billion, but there is little incentive to deploy this capital in a historically expensive stock market [16][18]. Group 2: Market Valuation Concerns - The market-cap-to-GDP ratio, known as the "Buffett Indicator," recently exceeded 210%, significantly above the historical average of 85% [11]. - The S&P 500's Shiller price-to-earnings (P/E) ratio reached 38.97, marking it as one of the priciest bull markets in history, with previous instances leading to declines of at least 20% [15]. - The current market conditions make it challenging for Buffett to find value, as price dislocations in quality businesses are rare in an overpriced market [10][22]. Group 3: Investment Philosophy and Strategy - Buffett's investment strategy emphasizes patience, often waiting for favorable price dislocations before making significant investments [19][22]. - Historical examples, such as the $5 billion investment in Bank of America in 2011, illustrate Buffett's approach of capitalizing on undervalued opportunities when they arise [20][21]. - The upcoming transition of leadership to Greg Abel may see a continuation of this patient investment philosophy, crucial for Berkshire Hathaway's long-term success [22].

金十图示：2025年08月04日（周一）全球富豪榜 | 排名 | 名字 | 身价(美元) | 身价变化 | 公司 | | --- | --- | --- | --- | --- | | 1 | 埃隆·马斯克 | 3980亿 | 0 0% | 特斯拉、Spa | | 2 | 拉里·埃里森 | 2893亿 | 0 0% | 甲骨文 | | 3 | 马克·扎克伯格 | 2587亿 | 0 0% | Meta | | 4 | 杰夫·贝佐斯 | 2289亿 | 0 0% | 亚马逊 | | 5 | 拉里·佩奇 | -0 1558亿 | 0 0% | 谷歌 | | 6 | 黄仁勋 | 1512亿 | 0 0% | 英伟达 | | 7 | 谢尔盖·布林 | 1487亿 | 0 0% | 谷歌 | | 8 | 史蒂夫·鲍尔默 | 1466亿 | 0 0% | 微软 | | 9 | 沃伦·巴菲特 | 1417亿 | 0 0% | 伯克希尔哈撒韦 | | 10 | 贝尔纳·阿尔诺家族 | 1407亿 | 0 0% | LVMH | | II | 迈克尔·戴尔 | 1282亿 | 0 0% | 戴尔 | .CO., @ JIN10 ...

Part I – Financial Information [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Presents Berkshire Hathaway Inc.'s unaudited consolidated financial statements as of June 30, 2025, with notes on accounting policies and key financial data Consolidated Balance Sheet Summary (As of June 30, 2025) | Metric | Amount (in millions) | | :--- | :--- | | **Total Assets** | **$1,163,968** | | Cash, cash equivalents, and U.S. Treasury Bills | $339,798 | | Investments in equity securities | $267,923 | | **Total Liabilities** | **$493,692** | | Insurance unpaid losses & loss adjustment expenses | $150,521 | | Notes payable and other borrowings | $127,020 | | **Total Shareholders' Equity** | **$670,276** | Consolidated Earnings Summary (First Six Months 2025 vs 2024) | Metric | First Six Months 2025 (in millions) | First Six Months 2024 (in millions) | | :--- | :--- | :--- | | **Total Revenues** | **$182,240** | **$183,522** | | Investment Gains (Losses) | ($71) | $25,733 | | **Net Earnings Attributable to Berkshire Shareholders** | **$16,973** | **$43,050** | | Net Earnings per Average Equivalent Class A Share | $11,801 | $29,936 | - Net cash flows from operating activities were **$21.0 billion** for the first six months of 2025, a decrease from **$24.2 billion** in the same period of 2024, while investing activities shifted to a positive **$33.0 billion** from a negative **$10.7 billion**[20](index=20&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail financial statement preparation, accounting policies, and key financial items, including a **$5.0 billion** Kraft Heinz impairment and major legal updates - In Q2 2025, the company recorded a pre-tax impairment loss of approximately **$5.0 billion** on its investment in The Kraft Heinz Company, reducing its carrying value to fair value[47](index=47&type=chunk) - As of June 30, 2025, the five largest equity holdings represented **67%** of the total equity portfolio fair value[36](index=36&type=chunk) - PacifiCorp has recorded cumulative estimated probable losses of approximately **$2.75 billion** related to the 2020 and 2022 Wildfires, with **$1.37 billion** paid in settlements through June 30, 2025[140](index=140&type=chunk)[141](index=141&type=chunk) - HomeServices reached a nationwide class settlement agreement in April 2024 regarding antitrust litigation, agreeing to payments aggregating **$250 million** over four years[144](index=144&type=chunk) - There were no share repurchases during the first six months of 2025, but the repurchase program remains active, contingent on consolidated cash holdings remaining above **$30 billion**[113](index=113&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and first six months 2025 results, highlighting mixed operating earnings, a strong financial condition with **$668 billion** equity, and investment volatility Net Earnings Attributable to Berkshire Shareholders (After-Tax, in millions) | Category | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Insurance – underwriting | $1,992 | $2,263 | $3,328 | $4,861 | | Insurance – investment income | $3,367 | $3,320 | $6,260 | $5,918 | | BNSF | $1,466 | $1,227 | $2,680 | $2,370 | | Berkshire Hathaway Energy | $702 | $655 | $1,799 | $1,372 | | Manufacturing, service and retailing | $3,601 | $3,380 | $6,661 | $6,468 | | Investment gains (losses) | $4,970 | $18,750 | ($68) | $20,230 | | Other-than-temporary impairment (Kraft Heinz) | ($3,760) | $— | ($3,760) | $— | | **Total Net Earnings** | **$12,370** | **$30,348** | **$16,973** | **$43,050** | - Management emphasizes that investment gains and losses are generally **meaningless** in understanding periodic results or evaluating economic performance and will continue to cause **significant volatility** in periodic earnings[169](index=169&type=chunk)[262](index=262&type=chunk) - The company's financial condition remains robust, with shareholders' equity at **$668 billion** as of June 30, 2025, an increase of **$18.6 billion** since year-end 2024, and **$339.8 billion** in cash, cash equivalents, and U.S. Treasury Bills held by insurance and other businesses[270](index=270&type=chunk)[272](index=272&type=chunk) [Insurance Operations](index=33&type=section&id=Insurance%20Operations) Underwriting earnings decreased by **$1.5 billion** due to wildfire losses, while GEICO performed strongly and insurance float increased to **$174 billion** - Net underwriting earnings for the first six months of 2025 were **$3.3 billion**, down from **$4.9 billion** in 2024, largely due to approximately **$850 million** in after-tax losses from Southern California wildfires[166](index=166&type=chunk)[174](index=174&type=chunk) - GEICO's pre-tax underwriting earnings for the first six months of 2025 were **$4.0 billion**, up from **$3.7 billion** in 2024, benefiting from higher average premiums and a **2.9 percentage point** decrease in the loss ratio[176](index=176&type=chunk)[177](index=177&type=chunk) - BH Primary experienced a pre-tax underwriting loss of **$81 million** in the first six months of 2025, a sharp reversal from a **$765 million** gain in 2024, driven by approximately **$300 million** in wildfire losses and a **$401 million** increase in estimated ultimate losses for prior years' claims[181](index=181&type=chunk)[183](index=183&type=chunk) - Insurance float was approximately **$174 billion** at June 30, 2025, an increase of **$3 billion** since December 31, 2024[202](index=202&type=chunk) [BNSF](index=38&type=section&id=BNSF) BNSF's net earnings increased **13.1%** to **$2.7 billion** in H1 2025, driven by lower operating expenses and a lower tax rate, despite declining average revenue per unit BNSF Earnings Summary (First Six Months) | Metric (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Railroad operating revenues | $11,402 | $11,361 | | Railroad operating expenses | $7,568 | $7,818 | | **Net earnings** | **$2,680** | **$2,370** | - Total freight volumes for the first six months of 2025 increased by **2.7%** compared to 2024, with Consumer Products up **4.5%** and Coal up **7.3%**, while Industrial Products declined **4.7%**[207](index=207&type=chunk) - Railroad operating expenses declined **3.2%** in the first six months of 2025, primarily due to a **12.4%** decrease in fuel expenses and lower costs from litigation accruals and cost management efforts[212](index=212&type=chunk) [Berkshire Hathaway Energy (BHE)](index=39&type=section&id=Berkshire%20Hathaway%20Energy%20%28BHE%29) BHE's net earnings increased **31.1%** to **$1.8 billion** in H1 2025, driven by higher U.S. utilities earnings and reduced real estate brokerage losses BHE Net Earnings Attributable to BHE (After-Tax, in millions) | Segment | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | | U.S. utilities | $862 | $643 | 34.1% | | Natural gas pipelines | $671 | $733 | (8.5)% | | Other energy businesses | $650 | $661 | (1.7)% | | Real estate brokerage | $30 | ($116) | N/A | | **Total** | **$1,802** | **$1,510** | **19.3%** | - The increase in U.S. utilities earnings was supported by a **3.3%** rise in retail customer volumes and higher rates, despite ongoing wildfire-related costs from prior periods[220](index=220&type=chunk)[221](index=221&type=chunk) - Real estate brokerage earnings improved by **$146 million** year-to-date, primarily due to charges in 2024 related to litigation settlements[224](index=224&type=chunk) [Manufacturing, Service and Retailing](index=41&type=section&id=Manufacturing%2C%20Service%20and%20Retailing) Manufacturing, Service, and Retailing segments reported a **3.0%** increase in after-tax earnings for H1 2025, with mixed performance across sub-segments Manufacturing, Service and Retailing Pre-Tax Earnings (First Six Months, in millions) | Category | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Manufacturing | $5,963 | $6,043 | (1.3)% | | Service and retailing | $2,690 | $2,453 | 9.7% | | **Total** | **$8,653** | **$8,496** | **1.8%** | - Within Industrial Products, PCC's pre-tax earnings grew **38.7%** year-to-date on strong aerospace demand, while Lubrizol's earnings fell **18.7%** due to lower volumes and higher costs[233](index=233&type=chunk)[234](index=234&type=chunk) - Building Products earnings declined **7.6%** pre-tax year-to-date due to slowing customer demand and pricing pressures, with Clayton Homes' earnings falling **3.7%** from higher interest expense and credit loss provisions[239](index=239&type=chunk)[241](index=241&type=chunk) - Service group pre-tax earnings rose **12.5%** year-to-date, led by aviation services and TTI, while Pilot's revenues declined **19.5%** but pre-tax earnings increased **6.7%**[250](index=250&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risks as of June 30, 2025, compared to the prior year's annual report - As of June 30, 2025, there were no material changes in the market risks described in Berkshire's Annual Report for the year ended December 31, 2024[288](index=288&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls are effective, with no significant changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of Q2 2025, the CEO and CFO concluded that the company's disclosure controls and procedures are effective[289](index=289&type=chunk) - No significant changes were made to the company's internal control over financial reporting during the second quarter[289](index=289&type=chunk) Part II – Other Information [Item 1. Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal actions, with significant litigation details in Note 22, expecting no material financial effect - The company is involved in routine legal actions arising from the normal course of business and does not believe they will have a material effect on its financial condition[290](index=290&type=chunk) - For information on significant litigation involving Berkshire subsidiaries, the report refers to Note 22 of the Consolidated Financial Statements[291](index=291&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) Refers to significant business risks detailed in the company's Form 10-K for 2024, with no material updates - The report references Item 1A of the Form 10-K for the year ended December 31, 2024, for a description of significant business risks[292](index=292&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%20and%20Issuer%20Repurchases%20of%20Equity%20Securities) No share repurchases in Q2 2025, but the program remains active, contingent on cash holdings staying above **$30 billion** - No Class A or Class B shares were repurchased during the second quarter of 2025[293](index=293&type=chunk) - The stock repurchase program remains active, allowing for repurchases when the price is below intrinsic value, provided that cash and U.S. Treasury Bill holdings do not fall below **$30 billion**[294](index=294&type=chunk) [News Release](index=56&type=section&id=News%20Release) Summarizes Berkshire Hathaway's Q2 and H1 2025 results, emphasizing operating earnings over GAAP net earnings due to investment volatility, with insurance float at **$174 billion** Operating Earnings Summary (After-Tax, in millions) | Category | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Insurance-underwriting | $1,992 | $2,263 | $3,328 | $4,861 | | Insurance-investment income | $3,367 | $3,320 | $6,260 | $5,918 | | BNSF | $1,466 | $1,227 | $2,680 | $2,370 | | Berkshire Hathaway Energy | $702 | $655 | $1,799 | $1,372 | | Manufacturing, service and retailing | $3,601 | $3,380 | $6,661 | $6,468 | | Other | $32 | $753 | $73 | $1,831 | | **Operating earnings** | **$11,160** | **$11,598** | **$20,801** | **$22,820** | - Management emphasizes that investment gains/losses included in GAAP net earnings are often **meaningless** for analysis and can be **misleading**, and therefore presents operating earnings as a **more useful measure** of business performance[319](index=319&type=chunk)[323](index=323&type=chunk) - Insurance float was approximately **$174 billion** at June 30, 2025, an increase of **$3 billion** since the end of 2024[321](index=321&type=chunk)

Core Viewpoint - Berkshire Hathaway, led by Warren Buffett, is expected to defy the "August curse" and report strong earnings, supported by robust cash reserves and diverse business operations [1][8] Group 1: Earnings and Financial Performance - UBS has raised Berkshire's 12-month target price to $595 for B shares, indicating a positive outlook despite market challenges [1] - Berkshire's insurance segment, particularly GEICO, is anticipated to show significant improvement, with a projected combined ratio of about 83% by Q2 2025, down from a target of 96% [3] - The company is expected to see revenue growth from $301.953 billion in 2022 to $386.843 billion by 2028, with net earnings projected to rise from $30.793 billion to $48.990 billion in the same period [6] Group 2: Business Segments and Growth Drivers - The BNSF railway is expected to maintain stable operations, with a projected operating profit margin increase of approximately 1.2 percentage points despite a slowdown in freight volume growth [3] - Berkshire's diverse business model includes both cyclical sectors like manufacturing and defensive sectors such as insurance and utilities, providing a buffer against economic downturns [2][9] Group 3: Strategic Opportunities and Market Position - There are indications of potential consolidation in the railway industry, with Berkshire possibly considering acquiring CSX, which could enhance its operational network and profitability [4][5] - Berkshire's substantial cash reserves, projected to increase from $340 billion to $346 billion by year-end, provide significant opportunities for acquisitions and stock buybacks, reinforcing its position as a "safe haven" investment [1][9]