Warren Buffett Watch

AP Warren Buffett heads to his table with his meal during lunch at the annual Allen and Co.'s media conference Wednesday, July 11, 2007, in Sun Valley, Idaho.

Berkshire Hathaway's second quarter net earnings increased 33% to $3.1 billion ($2018/share) in the second quarter of this year, compared to $2.3 billion ($1522/share) in the same quarter last year.  Operating earnings are up 22% to $2.5 billion ($1625/share).

Insurance-underwriting accounts for about 25% of those operating earnings, with roughly 33% coming from insurance-investment and 40% from non-insurance businesses.

Revenue came in at $27.4 billion, up 13% from last year.

Bloomberg notes that profit before investment gains jumped 22% to $2.51 billion, topping the forecast of Credit Suisse's Charles Gates, who had predicted underwriting profits would fall.

In its 10-Q filing with the SEC, Berkshire repeats its mantra on acquisitions: "Berkshire’s long-held acquisition strategy is to purchase businesses with consistent earnings, good returns on equity, able and honest management and at sensible prices."  Buffett's stated desire to make a major acquisition is prompting speculation that he may move relatively soon since stock prices have fallen and a credit crunch is making it harder for private equity firms to make competing bids.

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