Berkshire Hathaway’s Profit Drops 64% Due to Decrease in Portfolio Holdings Following Apple Sale by Buffett

Berkshire Hathaway’s First Quarter Profits Plummet, But Operating Earnings Soar

OMAHA, Neb. (AP) — Berkshire Hathaway, the conglomerate led by Warren Buffett, reported a significant drop in first-quarter profits due to a decline in the paper value of its investments. However, the company highlighted that most of the businesses it owns outright performed well during the period.

The company reported a profit of $12.7 billion, or $8.825 per Class A share, in the quarter, a sharp decrease from last year’s $35.5 billion, or $24,377 per A share. The figures were heavily impacted by the decrease in the paper value of Berkshire’s investments.

Despite the decline in overall profits, Berkshire’s operating earnings, which exclude investment figures, saw a significant increase of 39% to $11.222 billion from the previous year. The company’s insurance businesses, including Geico, delivered strong results during the quarter.

On a per-share basis, Berkshire’s operating earnings amounted to $7,796.47 per Class A share, surpassing analysts’ estimates. Buffett, known for his long-term investment strategy, was a net seller of $17 billion in stocks during the quarter, including reducing Berkshire’s stake in Apple.

While Berkshire’s cash pile reached a record $188.993 billion, the company remains cautious about making major acquisitions unless they present low risk and high potential returns. Despite the challenging market conditions, Berkshire’s diverse portfolio of businesses continues to generate substantial cash flow.

Overall, Berkshire Hathaway remains optimistic about its long-term prospects and is focused on making strategic investments that will drive future growth and profitability.