May 4 (UPI) — Investor Warren Buffett’s Berkshire Hathaway on Saturday reported a first-quarter profit of $11.2 billion and revealed it now holds a record total of $189 billion in cash reserves.
Cash reserves are up from $167.6 billion in the fourth quarter of last year and reflect an inability to find suitable business targets for major business acquisitions this year, the company said in its earnings report released at annual shareholder meeting in Omaha, Neb.
The $11.2 billion in first-quarter profit was 39% higher than the $8.9 billion in last year’s first quarter, driven largely by a sharp increase in profits from the company’s insurance underwriting business. Berkshire Hathaway.
First-quarter profits were supported by a 185% increase in insurance underwriting profits, which reached almost $2.6 billion from $911 million in the first quarter of 2023.
The GEICO subsidiary recorded an underwriting profit of $1.93 billion, an increase of 174% from $703 million in the same period last year.
Berkshire Hathaway’s insurance investment revenue also increased significantly to $2.5 billion, an increase of 32% from the previous year.
In a question-and-answer session with shareholders, the 92-year-old “Oracle of Omaha” advised investors to take the insurance results with “a grain of salt,” citing a slowdown expected in the third quarter, CNBC reported.
Buffett also commented on developments in the areas of artificial intelligence and renewable energy and said the conglomerate’s future investment decisions will be made by Vice President of Non-Insurance Operations Greg Abel, his presumed successor.
“I hope not only that you will come next year, but I hope that I will come next year,” he said in conclusion.
yahoo
