According to market news, Berkshire Hathaway will release financial results on August 4. Previously, the US stock market ushered in a strong bull market. Berkshire's heavy stock Apple stock continued to rise sharply. So what is the status of the financial report? Can it exceed market expectations?
I. Berkshire Hathaway's business model
Simply put, obtain income from this diversified business activity and low-cost financing to earn cash flow, thereby earning income through investment activities, and using strong compounding power to make the snowball of wealth roll bigger and bigger.
From the perspective of business essence and operating income, the company's business can be divided into two parts: operating activities and investment activities. Operation-related listed companies do not include fluctuations in their stock prices in the current income statement, while investment-related listed companies are included in the profit and loss of changes in fair value
Therefore, Berkshire's analysis needs to be considered from two dimensions, namely “the operating conditions of major holding companies” and “the overall performance of the US stock market.” Let's analyze them one by one.
II. Overall business activities benefit from the recovery of the United States
As far as operating activities are concerned, Berkshire Hathaway's business model is very diverse. They operate by holding subsidiaries in many different industries. These subsidiaries cover various fields such as insurance, freight railways, utilities, energy generation, etc., and are closely linked to the overall state of the US economy.
So what will Q2's performance be like?
Overall, since 2015, overall revenue has entered a period of steady growth, with an increase of about 3%. For leading companies in a stable competitive industry, revenue growth is basic...