The investment powerhouse built by Warren Buffett saw its first-quarter profit more than double to $10.1 billion, or $7,027 per Class A share, compared with $4.6 billion, or $3,200 per A share, in the same period last year. The earnings report coincided with the annual shareholder meeting in Omaha, Nebraska, marking the first gathering Buffett will not lead after Greg Abel assumed the CEO role in January.
Investment gains drove much of the profit surge. Berkshire recorded a $5.8 billion gain on stocks sold during the quarter, though the paper value of its overall investment portfolio slipped to just over $288 billion. The company's operating earnings—a metric Buffett has long advocated shareholders monitor for a clearer picture of business performance—rose to $11.3 billion, or $7,889.44 per Class A share, from $9.6 billion, or $6,703.41 per A share, last year. Four analysts surveyed by FactSet Research had predicted operating earnings of $7,611.35 per A share.
The conglomerate's financial position strengthened further as its cash reserves expanded to $397.4 billion at the end of the first quarter. A $249 million boost from favorable foreign currency exchange rates contributed to the bottom line, a stark reversal from a $713 million foreign currency loss recorded a year prior.
Most of Berkshire's operating divisions showed improved performance. The insurance segment, which includes Geico and other carriers, posted an underwriting profit of $1.7 billion, up from $1.34 billion last year. The BNSF railroad, along with the company's utility and manufacturing operations, also generated higher profits.
Attendance at this year's shareholder meeting was expected to decline modestly, reflecting the shift in leadership as Abel takes over the stage from Buffett, who has led the annual gathering for decades.
