Berkshire's Operating Earnings Rose $1.8 Billion Last Quarter. A Currency Swing Was $1.2 Billion of It.

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Berkshire’s Currency Boost Masks Slower Core Growth

A big chunk of Berkshire Hathaway’s earnings rise is from currency swings, not business growth.

Berkshire Hathaway’s Q2 results initially look good, with a 16% jump in operating earnings. But dig deeper, and $1.2 billion of that $1.8 billion increase comes from currency moves on foreign debt. This means the business grew at a modest 5%, which is decent but hardly exciting for such a sprawling conglomerate. Manufacturing is a bright spot (+24%), but the insurance side, usually its strength, took a hit with underwriting losses down 13%. For South African investors, this signals caution. The rand’s recent strength might similarly inflate earnings for companies with offshore debt, like some in mining or industrial sectors, if they revalue foreign liabilities. But don’t get carried away by headline growth figures alone—focus on core performance. If the USD/ZAR reverses, those currency gains can disappear fast. this is just our opinion and not financial advice