From CNBC: 2024-05-06 09:32:30

Warren Buffett attended Berkshire Hathaway’s Shareholder’s Meeting with the Geico gecko. The conglomerate reported a surge in operating earnings and a record cash hoard. Berkshire’s Class A shares rose by 1.5%, with Class B shares gaining 1.2%. Operating profit hit $11.22 billion, up 39% from the previous year.

The insurance sector, including Geico, drove Berkshire’s strong earnings. Insurance underwriting earnings soared to $2.598 billion, a 185% increase from last year. Geico earnings rose 174% to $1.928 billion. Berkshire’s first-quarter cash hoard grew to a record $188.99 billion due to a lack of acquisition opportunities.

Buffett highlighted improved insurance earnings and increasing investment income, due to higher yields and interest rates. Berkshire shares have outperformed, with Class A reaching an all-time high of $634,440. Analysts like UBS’ Brian Meredith have a buy rating with a $734,820 price target, citing strong earnings and Geico’s data analytics advances.

On the other hand, Edward Jones’ analyst James Shanahan has a hold rating on Berkshire, stating that the stock is fairly priced. However, he expects solid earnings performance from the conglomerate’s diverse range of operating companies. Berkshire Hathaway continues to attract positive outlooks from Wall Street analysts.

Read more: Berkshire Hathaway gains as insurance lifts first-quarter profit and cash nears $200 billion