Buffett's Berkshire pounces on market slump to buy equities in June qtr

Berkshire stepped in as the S&P 500 shed 16% in the latest quarter. The Omaha, Nebraska-based company also reported an operating profit of $9.2 bn as the insurance and railroad businesses posted gains

Warren Buffett’s Berkshire Hathaway Inc. is following an age-old adage: Buy the dip.
 

The conglomerate was a net buyer of equities in the quarter, reporting $3.8 billion in purchases, according to results released Saturday. It was a net seller in the second quarter of last year.

Berkshire stepped in as the S&P 500 shed 16% in the latest quarter. The Omaha, Nebraska-based company also reported an operating profit of $9.2 billion as the insurance and railroad businesses posted gains.

Cathy Seifert, an analyst with CFRA Research, said one business flashing potential warning signs is Geico, the company’s personal auto-insurance unit.