Berkshire Hathaway Posts $12.7B Q1 Profit as Buffett Hosts Annual Meeting

Warren Buffett's Berkshire Hathaway Inc. reported a $12.7 billion profit in the first quarter of 2024, with operating earnings jumping 39% to $11.222 billion. The impressive results were announced at the company's annual meeting in Omaha, Nebraska, where thousands of shareholders and fans gathered to hear insights from the legendary investor.

Why this matters: Berkshire Hathaway's strong performance has a ripple effect on the entire stock market, influencing investor confidence and shaping the broadereconomic landscape. As one of the largest and most successful conglomerates in the world, Berkshire's quarterly results serve as a bellwether for the global economy, making its performance a crucial indicator for investors and policymakers alike.

Despite a drop in investment value, Berkshire's performance exceededexpectations. Operating earnings per share climbed 21% to $4.47, while revenue rose 2% to just over $87 billion. Total net income, including investment gains or losses, was expected to tumble 72% due to tough year-earlier comparisons.

Berkshire's cash pile swelled to a record $167.6 billion in Q4 2023, up from $157.2 billion in the previous quarter. The company repurchased $2.2 billion of its own shares in Q4, bringing the 2023 total to $9.2 billion. Apple (AAPL) remains Berkshire's top holding.

At the annual meeting, Buffett answered dozens of questions from investors alongside Greg Abel, Berkshire's Vice Chairman of Non-Insurance Operations and Buffett's designated successor. This marked the first shareholder meeting without Charlie Munger, Buffett's long-time partner who passed away last year at age 99.

Berkshire's insurance business saw strong performance, with insurance investment income improving and $21.5 billion in insurance premiums collected during Q1, up from $19.8 billion a year ago. The company's railroad business, BNSF, also experienced growth, with segment revenues increasing to $24.4 billion from $21.9 billion in the prior year. "A century from now, BNSF will continue to be a major asset of the country and of Berkshire. You can count on that," Buffett stated, expressing optimism about the future of railroads.

Warren Buffett's Berkshire Hathaway demonstrated its resilience and strength in Q1 2024, posting impressive profits and operating earnings despite challenges in the investment landscape. With a record cash position and the enduring success of its diverse subsidiaries, the company remains well-positioned for future growth under Buffett's leadership and the guidance of his designated successors.

Key Takeaways

• Berkshire Hathaway reports $12.7 billion profit in Q1 2024, up 39%.
• Operating earnings per share climb 21% to $4.47, revenue rises 2% to $87 billion.
• Cash pile swells to record $167.6 billion, with $2.2 billion in share repurchases.
• Insurance business sees strong performance, with $21.5 billion in premiums collected.
• BNSF railroad segment revenues increase to $24.4 billion, up from $21.9 billion.