Berkshire Hathaway’s shares experienced a significant surge to reach unprecedented heights on Monday, following an impressive quarterly report that showcased a revival in insurance operations and a substantial cash reserve that expanded to nearly $150 billion. The Class A shares of Berkshire advanced by 3.4%, soaring to an all-time pinnacle of $551,920 at the close, surpassing the conglomerate’s previous peak set in March 2022. Correspondingly, the Class B shares of Warren Buffett’s conglomerate also saw a similar 3.6% rise, achieving a fresh record closing price of $362.58. Over the weekend, the Omaha-based conglomerate reported a 6.6% year-over-year surge in operating earnings, reaching $10.04 billion in the last quarter. The earnings from insurance underwriting registered a notable 74% upswing, amounting to $1.25 billion, largely driven by elevated interest rates and decreased losses from catastrophes. This robust insurance performance effectively countered the weakness observed in the railroad sector due to lower volumes. Simultaneously, Berkshire’s substantial cash reserve expanded to $147.38 billion by the end of June, approaching a historical high and substantially surpassing the $130.62 billion reported in the first quarter.

The elevated interest rates have earned Berkshire significant returns from its amassed cash. The conglomerate held a portfolio of short-term Treasury bills valued at over $97 billion. Warren Buffett previously disclosed that he had acquired $10 billion worth of 3-month or 6-month T-bills every Monday. Bill Stone, Chief Investment Officer at Glenview Trust and a Berkshire shareholder commented, “Berkshire Hathaway’s resilient earnings illustrated the value of its diversified business mix as it added to its cash hoard.” Berkshire also reported an unrealized gain of nearly $26 billion from its investments, a substantial portion resulting from its considerable stake in Apple. The impressive performance of the tech giant in the second quarter, with a nearly 18% climb, contributed significantly to this gain. Berkshire’s investment in Apple has now ballooned to $177.6 billion. Brian Meredith, a Berkshire analyst at UBS, expressed, “We continue to believe BRK’s shares are an attractive play in an uncertain macro environment.”