Buffett’s Berkshire Rallies to Record High on Earnings Beat

Berkshire Hathaway Inc. jumped to a record high after its Saturday earnings report showed an operating profit for the second quarter that exceeded Wall Street expectations.

Class B shares of Warren Buffett’s conglomerate of railroad, utility, energy and insurance companies gained 3.6% on Monday to $362.58, for the highest close ever. It marks the sharpest gain since November, powering the stock past the previous all-time high set in March last year.

“We still think Berkshire is an attractive name to own in a diversified financial portfolio due to its defensive qualities,” Jim Shanahan, an analyst at Edward Jones, said by phone. “Their earnings outlook improved a lot in the last 9 to 12 months as interest rates have moved higher and cash balances are back to approaching record levels.”

Berkshire Reaches New Heights

The more thinly traded Class A stock also set a closing record, at $551,920.

The B shares are now up about 17% this year, around even with the S&P 500 Index.