Warren Buffett's 'Berkshire Hathaway' Nets $6.4 Billion

Business conglomerate Berkshire Hathaway came away with $6.4 billion in the 2nd quarter.
5:02 | 08/04/14

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Transcript for Warren Buffett's 'Berkshire Hathaway' Nets $6.4 Billion
Okay. It is Monday August 4 the markets in new -- -- today's big number six point four billion dollars. Well as if Warren Buffett -- more reasons to be happy man that is how much his firm -- perhaps wait raked in the second quarter of this year. Everyone I'm Dan Butler in New York or that he has written all -- Yahoo! finance Rick Newman joining us on this Monday morning so Rick I -- put -- -- -- prospective. That is six point four billion dollars in just three months. It's right and that's and that's net income so. Very good year up almost two billion from last year. And you know about Buffett's company it's not it's a single company the way we think of IBM more. Do all it does and it's a conglomerate that basically invest in other companies. And he should hit his firm is structured so that it basically represents the US economy or at least for it represents the good parts of the US economy since one. Economy since Warren Buffett doesn't really invested in and dogs. So what I think these earnings -- buses. The slice of the US economy -- Warren Buffett's company reflects is doing quite well and that's why his earnings are up. The latest got to put that in to kind of seek further its other corporate what's it to corporations that you know if you think about -- actually creating something something something tangible. Apple had nine billion for the quarter hot ExxonMobil are -- apple had eight billion ExxonMobil had nine billion. But we're talking about this being a reflection of the US economy what kind of companies that -- make up this conglomerate Berkshire. -- while insurance is sort of the cash cow he makes a lot off insurance company -- Geico for example. And they provide a lot of cash that he uses by and find some of the other companies he ends a big chunk of Coca-Cola. He owns IBM he ends a railroad. He -- big chunk of HJ Heinz along with another company so there are a lot of sort of so become iconic brands in that portfolio. And let's break went down railroads for instance -- wouldn't that we don't think Cabrera does a hot exciting. Party economy but when railroads are. Shipping a lot of stuff around. Transporting cargo and freight that happens because the US economy is growing and there's a lot of commerce happening. So he's in a position to benefit when that happens IBM obviously -- blue chip company. They were they benefit from global growth. We've he -- -- candy company -- -- an ice cream company so you know he he benefits when people feeling just a little bit. Better off and and we'll spend a little bit more going out for something as simple as an ice cream -- out. -- Berkshire Hathaway really captures what's happening in the economy almost from top to bottom. What has he done and recently because another in the past couple of years he's had some pretty major deals. Well -- was a big one this was he took this was a publicly formerly public publicly owned company. That he took private. Along with another investing firm. And that and that is basically his strategy I mean that's when they bought what that's -- company that they bought outright. Other companies he just he just has shares in the company Wells Fargo is an example big bank -- that happens to be one of the banks that's doing best which tells you how good Warren Buffett is -- picking. The stock to invest -- he has an option to. Invest in Bank of America which could end up being a great play because that's -- beaten down bank that we'll probably get back on its feet some -- so. You know he's just really good at. Looking around at what's going on in saying -- he does not overpay for companies he looked for great bargains. And -- as he always says. Well he loves really well run companies that are undervalued and he's found them. -- -- -- So now when you added that six point four billion how much -- Berkshire -- right now. The market cap I think is over 200 billion dollars site could be a little bit off on that but. I mean it is it is basically one of the huge American companies in the thing like what like we -- at the beginning and the thing that's -- it interesting about that is this is not just one company it's a bunch of different companies report portfolio. Of companies. Nobody really runs a company like this this is -- Warren Buffett even at the age of 83. Just continues to be the sort of sage or by -- looks up to. And it still less -- -- how are the stocks of Berkshire Hathaway doing this morning. Well it's eight so called -- shares they trade at over a 189000. Dollars for one share. Those look like they're up a couple of percent this morning. It'll be one of the early movers today that's for sure these numbers from Berkshire were better than Wall Street expected. So we're gonna see you know nice pen nice gain in a stock that has gain for most of its storied history. Exactly you know you talk about -- -- couple percent earnings -- couple percent gain on that a 189000. That's not bad for -- -- work. Regular forgotten your right Rick are from Yahoo! finance Rick thanks so much have a good Monday -- -- Of course you can -- latest headlines right here on abcnews.com. Election a big number -- --

This transcript has been automatically generated and may not be 100% accurate.

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