Buffett made a $ 5.1 billion repurchase of Berkshire shares

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Investment giant Berkshire Hathaway announced today that it made a repurchase of its shares during the second quarter of this year. The company acquired $ 5.1 billion worth of shares in May and June. The company acquired Class B shares worth $ 4.6 billion and Class A shares worth $ 486.6 million.

This is the largest share of shares that Berkshire buys at one time. The previous acquisition was made in the last quarter of 2019, when the company made a $ 2.2 billion repurchase.

The second quarter in the shadow of the Corona was challenging for Warren Buffett’s investment firm. While net income jumped, the company’s operating profit was hurt. Operating income fell 10% to $ 5.5 billion, compared to $ 6.15 billion in the same period last year.

The company’s net profit jumped to $ 26.3 billion, compared to $ 14.1 billion in the same quarter last year. This is against the background of a jump in investment profits – $ 31 billion, compared to $ 7.8 billion in the corresponding period.

Berkshire Hathaway has invested in a number of companies whose stocks have jumped since the sharp declines last March. Thus, Apple’s stock – Berkshire’s largest holding – has more than doubled in value since March 23. JPMorgan has risen 27% since that time and Amazon has jumped more than 66%.

The holding company is traded on the New York Stock Exchange at a market value of $ 509 billion, after a 8% drop in the share price since the beginning of the year. In the first quarter of 2020, it posted a huge loss of $ 49.7 billion, compared to a net profit of $ 21.7 billion in the same quarter in 2019. During April, it sold shares for about $ 6.5 billion, mostly from airlines: United, American Airlines, Delta and Southwest. In fact, she sold all of her holdings in each of them.

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