How Berkshire’s Services and Retail Segment Performed
Services and retail
Berkshire Hathaway’s (BRK.B) services and retail division’s performance has been largely flat to positive in recent quarters due to improved revenues from jet services, electronics, media, partially offset by slower housing finance. The company continues to invest more in financial services owing to expectations of the relaxation of laws like the Dodd-Frank Act, which was enacted after the 2007 financial crisis. Berkshire is expanding its existing businesses in services through operating cash flows and fresh investments.
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Berkshire has maintained or increased its stake in traditional businesses like Walmart (WMT) compared to online and fast-growing businesses like Amazon (AMZN). However, new managers are looking at opportunities for generating wealth for shareholders after considering changing business dynamics.
In 2018, Berkshire’s furnishing and kitchen tool businesses could continue to grow at a faster rate, and its auto dealership might see some rebound. Overall, profitability might remain subdued for the retail business as compared to services.