Profits jump at Buffett's company ahead of annual meeting

Buffett's company, Berkshire Hathaway, reports a surge in first-quarter profits.

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Jun 26, 2023 • 4 min read

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Shareholders arriving at the Berkshire Hathaway Annual Meeting in Omaha on Saturday, 6 May 2023.

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Daphne Kalir Starr, 13 years old, from New York City, waits in line at the Berkshire Hathaway Annual Meeting on Saturday, 5 May 2023, Omaha, Nebraska, with her father Erez Kalir. The two arrived at midnight in order to get a place at the front.

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Liz McKenzie (left), Cody Mann (right), Mallory Carnley, and Genesis Ventura in the foreground are all Omaha residents who wait at the head of the line on Saturday, 5 May 2023 to enter the Berkshire Hathaway Annual Meeting. Mann was at the front of the line at 2 am to get his spot.

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Hami Liu, a Taiwanese woman from Taiwan, poses with a cardboard cutout of Warren Buffett during the Berkshire Bazaar of Bargains held at the CHI Health Center in Chicago on Friday May 5, 2023. (Chris Machian/Omaha World-Herald, via AP).

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Lucas Anderson of Casey Illinois tries VR goggles on for a flight sim at the Berkshire Bazaar of Bargains held at the CHI Health Center, Friday, May 5, 2019. (Chris Machian/Omaha World-Herald, via AP).

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(Chris Machian/Omaha World-Herald via AP) Shoppers stroll the floor at the Berkshire Bazaar of Bargains held at the CHI Health Center, on May 5, 2023. (Chris Machian/Omaha World-Herald, via AP).

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Tom Ecker tries a cowboy hat on at the Justin Boots Booth during the Berkshire Bazaar of Bargains held at the CHI Health Center, on Friday, 5 May 2023. (Chris Machian/Omaha World-Herald, via AP).

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Berkshire Hathaway shares pose with a blown-up version of the meet pass for this year in a packed exhibition hall, where many Berkshire businesses were selling their product Friday, May 5, 2020, Omaha, Neb. A packed Omaha arena is expected to be filled with thousands of people Saturday to hear CEO Warren Buffett answer all your questions.

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(AP) -- Warren Buffett’s company announced that its first-quarter profit soared, along with the value of the portfolio of investments. This is good news for the shareholders who will be filling an arena on Saturday to hear the billionaire answer questions and other top executives of the conglomerate.

Chloe Lin said, 'It is a once-in-a lifetime opportunity'. She traveled from Singapore for the first meeting and to learn from Buffett, his longtime partner in investing Charlie Munger.

Berkshire’s annual shareholders meeting is always attended by throngs who admire both investors and are eager to learn from their wisdom about current events and lessons in life. Some people feel a sense of urgency because both men will be 90 years old this year.

I wanted to meet him. Wu said, "It's on my list." I have to go while I can.

Berkshire Hathaway announced Saturday morning that the company made $35.5 billion in its first quarter, or $24,377 for each Class A share. This is more than six times the $5.58 billion or $3.784 per class A share of last year.

Buffett has warned for years that Berkshire's bottom-line figures are misleading because of the large swings in its investment values, most of which the company rarely sells. Berkshire recorded a paper gain of $27,4 billion while selling only $1.7 billion in stocks. Berkshire recorded a $2.4billion boost in investment gains this year due to its planned January acquisition of Pilot Travel Centers' shares.

Buffett believes that Berkshire's operating profits, excluding investments, are a more accurate measure of performance. Berkshire’s operating earnings increased by nearly 13%, to $8.065 Billion, from $7.16 Billion a year earlier.

FactSet surveyed three analysts who expected Berkshire's operating earnings to be $5,370.91 for each Class A Share.

The first quarter of this year was quieter than the same period last year when Buffett revealed he went on a $51-billion spending spree to start off the year. He bought stocks such as Occidental Petroleum and HP. Buffett's purchases slowed down through the remainder of last year, with the exceptions of a few additional Occidental purchases.

Berkshire had $130.616 trillion in cash at the end the first quarter of this year, up from the $128.585 billion it held at the end last year. Berkshire spent $4.4 billion to buy its own stock during the first quarter.

The report did not reveal any major new investments in stocks this year. The eclectic mix of Berkshire companies did well, despite fears of an impending recession.

Berkshire Insurance, which includes Geico, and several large reinsurers recorded an operating profit of $911 million, up from $167 millions last year. This was largely due to a rebounding Geico results. Geico benefited from higher premiums, a decrease in advertising and claims and an increase in premiums.

Berkshire BNSF Railroad and its large utility division did report lower profit. BNSF's earnings dropped from $1.37 to $1.25 billion as shipments fell 10% following the loss of a large customer and a slowdown in imports at West Coast ports. Utility division has added $416 millions, down from $775 million last year.

Berkshire also owns dozens of businesses other than those listed above, such as See's Candy, Precision Castparts, and a variety of manufacturing and retail firms.