The second quarter profit for Berkshire Hathaway Inc increased by 46%. The gains came from paper gains from its investments as well as its derivative contracts. Last Friday, the firm announced its net income was at US$4.54 billion or the equivalent of US$2, 763 per class A share. This is an increase from its 2012 profit of US$3.1 billion or US$1,882 per Class A share.
The largest factor was Berkshire's investments and derivatives, amounting to US$622 million for 2013. In 2012, the firm recorded a US$612 million loss on these very same investments. Overall, Warren Buffett's firm earned US$44.69 billion and grew 16% alongside its 80 subsidiaries performed very well.
Among the many subsidiaries of the company are insurance and finance firms such as GEICO, which it owns in full 100%, Applied Underwriters, also fully owned by the company and National Indemnity Company, also at 100%. Other companies that is fully owned by the hedge fund firm include Dairy Queen, Mars Incorporated, Fruit of the Loom and Helzberg Diamonds.
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