Analyzing BRK B’s Latest Financial Results

Warren Buffett just released Berkshire Hathaway’s latest “report card,” and it contains one giant number he wants you to completely ignore. While headlines often fixate on wild profit swings, Buffett himself directs us to a much more stable and telling figure. Here’s a guide to understanding the key financial metric that reveals how his businesses are actually performing.

The number to watch is called Operating Earnings. Think of it this way: your salary from your job is your operating earnings, while the fluctuating value of your 401(k) is more like net earnings. For Berkshire, operating earnings are the actual profits generated by its companies—from GEICO selling insurance policies to BNSF Railway shipping goods. It strips out the unpredictable paper gains or losses from the stock market.

This focus on operations gives us the real story. In its most recent quarter, Berkshire Hathaway reported $11.2 billion in operating earnings, a clear signal of the underlying health of its vast business empire. This is the figure that truly shows whether the company’s core components are strong, stable, and growing over time.

Where Did the Money Come From? A Look at Insurance and Railroads

The overall operating profit number is a great start, but the real story is in how Berkshire’s biggest businesses performed. Think of the company as a collection of giant divisions, with its insurance operations and massive railroad being two of the most important engines driving it forward.

First up is insurance, which includes household names like GEICO. This division earned a strong underwriting profit—a simple term for the money left over after collecting premiums and paying out customer claims. A quarter with fewer major hurricanes or a drop in costly auto accidents means GEICO keeps more of the money it brings in, which directly boosts Berkshire’s bottom line.

Another huge contributor was the BNSF railway, the massive railroad that crisscrosses North America. Its performance is often seen as a barometer for the economy; when more goods are being shipped, BNSF does well. While the railroad moved a steady volume of products, it also faced higher fuel costs, which ate into some of its profit but still left it as a powerful earner for the company.

Together, the solid results from insurance and the steady performance of the railroad show why Warren Buffett values these core operations. They are reliable money-makers that consistently churn out cash.

What Is Berkshire Doing With Its Giant Pile of Cash?

One of the most-watched figures in Berkshire’s report is its cash hoard, which now sits at a staggering $189 billion in “cash and equivalents.” Think of this as the world’s largest corporate rainy-day fund, money held in bank accounts and ultra-safe, short-term investments. This massive pile gives Warren Buffett and his team immense flexibility to weather economic storms or, more importantly, to pounce on big investment opportunities when they arise.

One of the main ways Berkshire put that cash to work this quarter was by investing in itself. The company spent $2.6 billion on “share buybacks”—a process where it uses its own money to buy its stock from the open market. This reduces the total number of shares out there. For you as a shareholder, this is good news. It’s like owning a slice of a pizza; if the company removes a few slices from the total, your remaining slice automatically becomes a slightly bigger piece of the whole pie.

These buybacks are also a powerful signal. When a company buys back its own stock, it’s essentially saying that it believes its own shares are a good, or even undervalued, investment. It’s a significant vote of confidence from the people who know the business best.

A Look Inside Berkshire’s Famous Stock Portfolio

Beyond owning companies outright, a huge chunk of Berkshire’s value comes from its massive stock portfolio. For years, the undisputed king of this portfolio has been Apple. Even after some recent sales, the tech giant remains by far Berkshire’s largest and most important stock investment, making up a colossal slice of its public holdings.

Notably, the company trimmed its Apple position this quarter. While it sold a significant number of shares, Berkshire still holds a massive position of hundreds of millions of them. This doesn’t signal a loss of faith; rather, it’s often a strategic move to lock in massive profits on a position that has grown gigantic and raise cash for other opportunities.

These adjustments offer clues into the investment team’s thinking. The highlights of Berkshire’s latest filings—from disciplined buybacks to trimming a huge winner—paint a picture of a company preparing for the future, not reacting to the present. This cautious, value-oriented approach is central to its identity.

The Bottom Line: Is BRK.B Still a ‘Safe’ Bet After These Results?

The story of Berkshire’s health isn’t found in volatile net earnings, but in the steady, predictable profits from the companies it actually owns. This latest earnings report shows that foundation is solid. Its core businesses are chugging along, and while BRK B performance vs the S&P 500 will always vary, the company’s true strength is this operational stability.

For many, that helps answer if BRK B is a good investment after earnings: its health is tied to its real-world businesses, not just daily stock moves.

Next time you see a news alert about Berkshire Hathaway, you’ll know to look past the dramatic “net earnings” and check the “operating earnings.” That one simple step cuts through the market noise and tells you how the company is really doing, giving you clarity and confidence each quarter.