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Veteran investor Warren Buffett's Berkshire Hathaway (BRK.B - Free Report) reported second-quarter earnings in late last week. Operating earnings rose 7% to $10.04 billion year over year, with revenues up 21% to $92.5 billion. Analysts expected Berkshire earnings to fall 8% year over year to $3.87 a share, with revenue up nearly 6% to $80.58 billion (read: Time for Value ETFs as Buffett Indicator Signals Caution?).
The companies’ insurance underwriting profit skyrocketed 74%. Insurance investment income also rose solidly. Those made up for a 24% drop in the BNSF railroad's profit, per investors.com. Warren Buffett bought just $1.4 billion of Berkshire stock in the second quarter, probably due to higher prices of stock. In Q1, Berkshire bought back $4.4 billion, up 57% from Q4 and the most since Q1 of 2021.
Below we highlight the key pointers from the earnings report and see how these can form winning ETF strategies for investors.
Does AI Deserve a Must-Have Place in Portfolio?
About 47% of Warren Buffett's $375 billion portfolio is invested in three Artificial Intelligence (AI) stocks, per Motley Fool. These three stocks are Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) and Snowflake (SNOW - Free Report) . The company's stake in Apple surged to $177.6 billion by the end of Q2. Buffett's 5.8% stake in Apple continues to be the pillar of Berkshire's equity portfolio, per Investopedia.
Hence, ETFs like Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) deserves a place in your portfolio. Apart from this, investors can play Apple-heavy ETFs Technology Select Sector SPDR Fund (XLK - Free Report) and Fidelity MSCI Information Technology Index ETF (FTEC), Amazon-heavy ETFs ProShares Online Retail ETF (ONLN - Free Report) and Vanguard Consumer Discretionary ETF (VCR) and Snowflake-heavy ETFs like Renaissance IPO ETF (IPO - Free Report) .
Cash in King
Berkshire continued to grow its massive cash stockpile, adding $16.7 billion in cash and short-term securities in the quarter. Total cash now stands at $147.4 billion.
Notably, some customers have been avoiding the banking system altogether lately and moving their money to U.S. money market funds in quest of higher yields. As the Fed started to raise interest rates to cool the economy, depositors started searching for higher-yield options.
Investors can play cash-like ETFs which include JPMorgan Ultra-Short Income ETF (JPST - Free Report) , First Trust Low Duration Strategic Focus ETF (LDSF - Free Report) and Arrow Reserve Capital Management ETF (ARCM). These ETFs offer 3.61%, 3.58% and 2.65% yield, respectively (read: Where are Americans Parking Money? ETFs in Focus).
Insurance Stocks in Sweet Spot?
Warren Buffett’s Berkshire Hathaway recorded gains in operating profit helped by its insurance businesses which helped mitigate inflationary pressures. SPDR S&P Insurance ETF (KIE - Free Report) has advanced 4.9% past month (as of Aug 4, 2023).
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ETF Lessons to Learn from Berkshire Earnings
Veteran investor Warren Buffett's Berkshire Hathaway (BRK.B - Free Report) reported second-quarter earnings in late last week. Operating earnings rose 7% to $10.04 billion year over year, with revenues up 21% to $92.5 billion. Analysts expected Berkshire earnings to fall 8% year over year to $3.87 a share, with revenue up nearly 6% to $80.58 billion (read: Time for Value ETFs as Buffett Indicator Signals Caution?).
The companies’ insurance underwriting profit skyrocketed 74%. Insurance investment income also rose solidly. Those made up for a 24% drop in the BNSF railroad's profit, per investors.com. Warren Buffett bought just $1.4 billion of Berkshire stock in the second quarter, probably due to higher prices of stock. In Q1, Berkshire bought back $4.4 billion, up 57% from Q4 and the most since Q1 of 2021.
Below we highlight the key pointers from the earnings report and see how these can form winning ETF strategies for investors.
Does AI Deserve a Must-Have Place in Portfolio?
About 47% of Warren Buffett's $375 billion portfolio is invested in three Artificial Intelligence (AI) stocks, per Motley Fool. These three stocks are Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) and Snowflake (SNOW - Free Report) . The company's stake in Apple surged to $177.6 billion by the end of Q2. Buffett's 5.8% stake in Apple continues to be the pillar of Berkshire's equity portfolio, per Investopedia.
Hence, ETFs like Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) deserves a place in your portfolio. Apart from this, investors can play Apple-heavy ETFs Technology Select Sector SPDR Fund (XLK - Free Report) and Fidelity MSCI Information Technology Index ETF (FTEC), Amazon-heavy ETFs ProShares Online Retail ETF (ONLN - Free Report) and Vanguard Consumer Discretionary ETF (VCR) and Snowflake-heavy ETFs like Renaissance IPO ETF (IPO - Free Report) .
Cash in King
Berkshire continued to grow its massive cash stockpile, adding $16.7 billion in cash and short-term securities in the quarter. Total cash now stands at $147.4 billion.
Notably, some customers have been avoiding the banking system altogether lately and moving their money to U.S. money market funds in quest of higher yields. As the Fed started to raise interest rates to cool the economy, depositors started searching for higher-yield options.
Investors can play cash-like ETFs which include JPMorgan Ultra-Short Income ETF (JPST - Free Report) , First Trust Low Duration Strategic Focus ETF (LDSF - Free Report) and Arrow Reserve Capital Management ETF (ARCM). These ETFs offer 3.61%, 3.58% and 2.65% yield, respectively (read: Where are Americans Parking Money? ETFs in Focus).
Insurance Stocks in Sweet Spot?
Warren Buffett’s Berkshire Hathaway recorded gains in operating profit helped by its insurance businesses which helped mitigate inflationary pressures. SPDR S&P Insurance ETF (KIE - Free Report) has advanced 4.9% past month (as of Aug 4, 2023).