From Nasdaq: 2024-05-04 11:15:58

Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) reported first-quarter results with revenue up 5% and operating earnings increasing by 39%. The company’s cash hoard hit a record high of $189 billion, largely due to accelerated buybacks totaling $2.6 billion. The report hints at Berkshire unloading about 13% of its Apple (NASDAQ: AAPL) investment.

The first-quarter earnings report from Berkshire Hathaway reveals strong operating earnings and revenue growth. However, the net income declined 64% due to unrealized investment gains and losses. Berkshire’s cash stockpile has reached $189 billion, fueled by increased buyback activity and potentially reducing its Apple investment by 13% in the first quarter.

Buffett’s caution for investors to focus on Berkshire’s operating earnings is validated by the 39% year-over-year growth. The insurance business led the charge with increased underwriting income and a 32% growth in investment income. Berkshire’s operating earnings were positively impacted by Berkshire Hathaway Energy’s 72% rise, offsetting BNSF Railroad’s 8% drop.

While Berkshire’s revenue and earnings exceeded analyst expectations, the rapid growth in Berkshire’s cash hoard raises questions about future investment decisions. Despite the uncertainties, the first-quarter buybacks and investment performance indicate a positive outlook. Stay tuned for more insights from Berkshire’s annual shareholder meeting in Omaha.



Read more at Nasdaq: Berkshire Hathaway Trims Its Apple Investment and Has $189 Billion in Cash