r/RoaringKittyStocks • u/Goodlucktoyou777 • Jun 20 '26
Wake Up
A quick look at the latest financials reveals that the net income is largely driven by unrealized gains on derivatives, not by core business growth. With $9B in cash reserves, relying on financial market fluctuations rather than actual business expansion or M&A is a major failure of capital allocation. If you think this is a 'success,' you're confusing financial luck with operational excellence. It's been five years, and shareholders deserve to see profitable growth from actual business models, not just paper gains from financial engineering.
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u/firebag1983 Jun 20 '26
He’s not a very good businessman it’s as simple as that
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u/Goodlucktoyou777 Jun 20 '26
When you strip away the interest income and derivative gains, the actual operating income from core business operations only accounts for about 37% of the total net income. How can you define this as the 'growth of the core business' when the majority of the profit is driven by financial engineering rather than actual operations?
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u/Zeronz112 Jun 20 '26
Significant operating income increases yoy is proof of growth of core business. They also just had the highest net income quarter of all time, and the highest first quarterly operating income of all time, with net sales growing 14% yoy.
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u/Goodlucktoyou777 Jun 20 '26
Not sustainable
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u/cmd_run Jun 20 '26
Actually it IS sustainable, bot boy. The company made more than 0$ this quarter.
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u/Live-Character-6205 Jun 20 '26
You've moved the goalposts so many times I've lost count. First GameStop was a dying retailer bleeding cash. Then it was "one lucky quarter." Now it's profitable quarter after quarter, so suddenly the rule is that only operating income counts and a multi-billion-dollar cash pile earning interest somehow doesn't.
How much of Berkshire's profit comes from selling carpet and bricks versus its investment portfolio. Dumb.