OMAHA, Neb. — Investment powerhouse Berkshire Hathaway announced first-quarter earnings that more than doubled compared to the same period last year, driven by strong investment performance and improved business operations across most of its holdings.
The Warren Buffett-founded company disclosed earnings of $10.1 billion, equivalent to $7,027 per Class A share, as thousands of investors arrived in Omaha, Nebraska, for Saturday’s annual shareholder meeting. This represents a substantial jump from the previous year’s first-quarter results of $4.6 billion, or $3,200 per Class A share.
Saturday’s gathering marks a historic milestone as the first annual meeting where Buffett will not serve as chief executive from the podium, following Greg Abel’s promotion to CEO in January. Event organizers anticipate slightly lower attendance compared to previous years.
Investment gains significantly boosted the company’s financial performance, with Berkshire recording $5.8 billion in profits from stock sales during the three-month period. However, the overall value of its investment portfolio decreased slightly to approximately $288 billion.
The company’s substantial cash reserves continued their upward trend, reaching $397.4 billion by the end of March.
Operating earnings, which Buffett has consistently highlighted as a more accurate measure of business performance since they exclude investment fluctuations, climbed to $11.3 billion or $7,889.44 per Class A share. This compares favorably to last year’s operating earnings of $9.6 billion, or $6,703.41 per Class A share, and exceeded analyst expectations of $7,611.35 per share according to FactSet Research.
Currency exchange rates provided an additional $249 million benefit to the company’s results, a stark contrast to the $713 million foreign currency loss recorded in the same quarter last year.
Nearly all of Berkshire’s diverse business portfolio delivered improved operating performance. The insurance division, which encompasses Geico and several other carriers, generated underwriting profits of $1.7 billion, surpassing the previous year’s $1.34 billion. The BNSF railroad operation, along with the company’s utility and manufacturing divisions, also contributed modest profit increases.
