Warren Buffett has built his reputation as one of the most trusted investors on Wall Street over nearly seven decades by sticking to certain principles that he readily shares with the investing community.
On Monday, the investing community pushed his firm Berkshire Hathaway (BRK.B) -) to a new all-time high after the multinational conglomerate's insurance operations helped the company top earnings estimates and increase its massive cash pile.
Buffett, who famously enjoys several cans of Coca-Cola (KO) -) per day, may be partaking in a celebratory one over the news.
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At last check, Berkshire Hathaway shares were up 3.75% to $363.15 per share. The stock is up more than 17% year to date.
The company reported a 74% increase in insurance underwriting earnings to $1.25 billion.
Berkshire reported cash on hand of $147.38 billion at the end of the second quarter, up from the $130.62 billion the company held in the previous quarter.
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Part of the appreciation of that cash pile is due to rising interest rates which is allowing the money Berkshire has put to work for the company and its shareholders.
Last week, Buffett reacted to Fitch Ratings' downgrade of U.S. debt by promising to buy $10 billion in U.S. Treasury notes.
"Berkshire bought $10 billion in U.S. Treasurys last Monday. We bought $10 billion in Treasurys this Monday. The only question for next Monday [following the downgrade] is whether we will buy $10 billion in 3-month or 6-month (T-bills)," Buffett told CNBC last week.
Last week, Fitch lowered its long-term U.S. debt rating by one notch, to AA+ from AAA. The company noted that congressional standoffs over the country's $31.4 trillion debt ceiling, "along with several economic shocks as well as tax cuts and new spending initiatives," will likely lead to expanded deficits and a heavier debt-servicing burden for the country and its taxpayers.
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