Warren Buffett's Berkshire Hathaway has reported a whopping $35.5 billion profit in the first quarter of this year. This impressive financial result is due to gains from stocks such as Apple and a rebound at car insurer Geico, which bolstered operating results.
In addition, the company bought back $4.4 billion worth of its own stock and reduced its investment in other stocks such as Chevron Corp. However, it is still a major holding for Berkshire. The company's net income equaled $24,377 per Class A share, up from $5.58 billion, or $3,784 per share, a year earlier. The jump in Apple's stock price was a significant factor, leaving Berkshire with a $151 billion stake in the iPhone maker.
Berkshire's quarterly operating profit increased by 13% to $8.07 billion or about $5,561 per Class A share, up from $7.16 billion. The results were boosted by Geico snapping a six-quarter string of underwriting losses, and a 68% increase in the income Berkshire's insurance units generated from investments.
Despite this impressive financial result, Berkshire's cash hoard grew $2 billion in the quarter to $130.6 billion as the company sold a net $10.4 billion of stocks. Its stake in Chevron fell 28% to $21.6 billion, though the oil company's stock price only dropped 9%.
Berkshire Hathaway is a conglomerate with dozens of businesses, including BNSF railroad, Berkshire Hathaway Energy, and manufacturing and retail units such as See's Candies and Dairy Queen ice cream. The company's Class A shares have risen 4.9% this year, which is trailing behind the Standard & Poor's 500's 7.7% gain. However, it is important to note that the index lagged behind Berkshire by 23.4 percentage points in 2022, excluding dividends.
Warren Buffett, who is 92 years old, has run Berkshire since 1965, transforming it from a struggling textile company into a financial powerhouse. The company's annual shareholder meeting in Omaha is part of a weekend that draws tens of thousands of people to the city.
It is worth noting that an accounting rule requires Berkshire to report unrealized gains and losses with net results. However, Buffett urges investors to ignore the resulting volatility.
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