Berkshire Hathaway’s Operating Earnings Fell: Is the Value Stock a Buy at an All-Time High?
From Nasdaq: 2025-05-07 05:00:00
Berkshire Hathaway stock hits all-time high ahead of 60th annual meeting, outperforming S&P 500 with 14% gain. Company’s investments in equity securities reduced, cash position increased, releasing Q1 2025 results with 14% operating earnings decline.
Berkshire’s value divided into controlled businesses, equity securities, and cash position. Cash at $347.68 billion, equity securities at $277.41 billion, and market cap at $1.163 trillion. Operating earnings down in first quarter due to lower insurance underwriting earnings.
Insurance underwriting, investment income, and key segment earnings detailed for Q1 2024 and Q1 2025. Overall operating earnings solid, with segments like BNSF and manufacturing showing little growth year over year.
Buffett emphasizes long-term perspective at annual meeting, highlighting Berkshire’s focus on future rather than short-term changes. Market cap growth outpacing equity investments indicates controlled businesses driving earnings. Despite changing landscape, Berkshire remains a good buy for patient investors. Berkshire Hathaway’s stock price is outpacing the growth rate of its controlled business, leading to extended valuation. Consider investing $1,000 in Berkshire Hathaway? The Motley Fool’s Stock Advisor team identified 10 best stocks for investors, excluding Berkshire Hathaway. Stock Advisor’s total average return is 894%, outperforming the S&P 500’s 163%. American Express and Bank of America are advertising partners of Motley Fool Money. The author has no position in mentioned stocks. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The author’s views do not necessarily reflect those of Nasdaq, Inc.
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