Berkshire Hathaway Inc. ( NYSE:BRK.B) looks to be gunning for new highs, as the company reported a Q2 earnings rise of 21%.

Q2 2021 earnings results

• Operating earnings US$6.69b, US$1.18b Y/Y

• Quarterly buybacks US$6b, YTD US$12.6b

• Q2 net earnings of US$28.1b or US$12.33 per class B share

Warren Buffett keeps repurchasing shares. Following the record buybacks in 2020 (US$25b), he holds a similar pace in 2021 so far. The analysts who have been following his actions through the decades know that he prefers to purchase businesses at 10x pretax earnings plus the cash position or better. However, he is a disciplined buyer who waits for the best timing, even for his own company. Buybacks slowed down in May after Berkshire put in a new all-time high; therefore, it is worth keeping an eye on the buyback volume as price revisits those levels.

Unfortunately for shareholders, while the Berkshire Hathaway share price is up 93% in the last five years, that's less than the market return.There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance.One way to examine how market sentiment has changed over time is to look at the interaction between its share price and its earnings per share (EPS).

_{NYSE:BRK.B Earnings Per Share Growth August 9th, 2021}

Over half a decade, Berkshire Hathaway managed to grow its earnings per share at 35% a year.The EPS growth is more impressive than the yearly share price gain of 14% over the same period.Therefore, it seems the market has become relatively pessimistic about the company.This cautious sentiment is reflected in its (reasonably low) P/E ratio of 6.50.

A Different Perspective

Berkshire Hathaway provided a TSR of 36% over the year. That's relatively close to the broader market return.That gain looks pretty satisfying, and it is even better than the five-year TSR of 14% per year. Management foresight may bring growth well into the future, even if the share price slows down.I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Berkshire Hathaway that you should be aware of before investing here.

Berkshire Hathaway is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Please note, the market returns quoted in this article reflect the market-weighted average returns of stocks that currently trade on US exchanges.