Berkshire Hathaway more than doubled its first-quarter profit 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 announcement came Saturday as thousands of shareholders gathered in Omaha, Nebraska, for the company's annual meeting, marking the first such event since Greg Abel took over as chief executive in January.
The conglomerate's strong results reflected gains across its investment portfolio and improved performance from most of its operating businesses. Berkshire recorded a $5.8 billion gain on stocks it sold during the quarter, though the total value of its investment portfolio slipped to just over $288 billion. The company's cash reserves continued to accumulate, reaching $397.4 billion by the end of the first quarter.
Operating earnings, a metric Warren Buffett has long encouraged investors to monitor for a clearer picture of business performance, climbed to $11.3 billion, or $7,889.44 per Class A share, from $9.6 billion, or $6,703.41 per A share, in the prior year. This exceeded the $7,611.35 per share prediction from four analysts surveyed by FactSet Research.
Foreign currency holdings contributed $249 million to Berkshire's profits during the quarter, a stark reversal from a $713 million loss recorded a year earlier due to exchange rate movements. The insurance division, which includes Geico and several other insurers, reported underwriting profit of $1.7 billion, up from $1.34 billion last year. The company's BNSF railroad, utility operations, and manufacturing businesses all posted improved earnings.
Attendance at this year's shareholders meeting was expected to be somewhat lower than in previous years, marking a shift in the annual gathering following Abel's promotion to the chief executive role.
