OMAHA, Neb. (AP) — Berkshire Hathaway’s first-quarter profits fell, as did the paper value of its investments, but the company said Saturday that most of the businesses it owns performed well.
The company reported earnings of $12.7 billion, or $8.825 per Class A share, in the quarter. That’s about a third of last year’s $35.5 billion, or $24,377 per A share.
The figures were heavily influenced by a sharp decline in the paper value of Berkshire’s investments. Buffett encourages investors to pay more attention to the conglomerate’s operating results that exclude investment figures. Operating profit jumped 39% to $11.222 billion from $8.065 billion a year ago as insurance companies posted strong results.
On a per-share basis, this year’s first-quarter operating figure came in at $7,796.47 per Class A share, beating estimates from three FactSet Research analysts, who called for $6,701.87 per Class A share. HAS.
Buffett sold $17 billion worth of stock during the quarter, including reducing Berkshire’s massive stake in Apple by about 13%. At $135.4 billion, the iPhone maker still represents the largest share of Berkshire’s $364 billion portfolio. Buffett said he expects it to stay that way until his successor Greg Abel takes over.
The estimated value of Berkshire’s stake in Apple suggests that Buffett sold more than 100 million shares. In the past, Buffett has said he invested in Apple stock because of consumers’ devotion to the company’s products, similar to consumer brands he likes like Berkshire’s See’s Candy.
Apple CEO Tim Cook, present at the Berkshire meeting, told CNBC that he still considered it a privilege to have Berkshire as a major shareholder, and that he knew about the sales before Berkshire made them. disclosed on Saturday.
Berkshire reported underwriting profit of $2.6 billion among its insurers, up from $911 million a year ago, with Geico in particular continuing to improve its results. However, BNSF railroad profits fell 8 percent to $1.143 billion.
Most of Berkshire’s many other companies posted strong results, including a 72% jump in operating profits at the utilities unit, adding $717 million to Berkshire’s total.
Revenue increased 5% to $89.87 billion in the quarter. The two analysts who reported their estimates to FactSet predicted $87.044 billion.
With no major acquisitions in sight, Berkshire’s cash pile soared to a record $188.993 billion, even after spending $2.6 billion on share buybacks in the first three months of the year. Holdings such as Geico Insurance, BNSF Railroad, several major utilities and an assortment of dozens of others continue to generate mountains of cash.
“We’d love to spend it, but we won’t spend it unless we’re doing something with very little risk that will make us a lot of money,” Buffett said.
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