Berkshire Hathaway operating earnings soar 39% as Buffett’s cash hoard swells to record $188 billion

Berkshire Hathaway, led by renowned investor Warren Buffett, recently announced exceptional operating results for the first quarter of 2024.

The company’s operating profit, which reflects earnings from its owned businesses, surged by 39% to a remarkable $11.22 billion.

A significant contributor to this impressive growth was the company’s insurance operations.

Insurance underwriting earnings skyrocketed by 185%, reaching $2.598 billion from $911 million a year earlier.

Geico, Berkshire’s car insurance arm, saw its earnings soar by 174% to $1.928 billion.

Insurance investment income also experienced significant growth of 32%.

Berkshire’s other businesses also performed admirably.

Its railroad division generated $1.14 billion in profit, despite a slight decrease from the previous year.

The energy division nearly doubled its earnings, reporting $717 million compared to $416 million in the first quarter of 2023.

However, Berkshire’s overall net earnings, which include fluctuations from its stock investments, declined by 64% to $12.7 billion.

Buffett believes these unrealized investment gains and losses are misleading and does not consider them meaningful.

Berkshire’s massive cash reserves reached a record high of $188.99 billion, indicating Buffett’s cautious approach in finding suitable acquisition targets.

The company also repurchased $2.6 billion of its stock, continuing a recent trend.

These strong financial results bode well for Berkshire Hathaway and its shareholders.

The upcoming annual shareholder meeting, often referred to as “Woodstock for Capitalists,” will provide an opportunity for insights into Buffett’s investment strategy and economic views.

Berkshire Class A shares have performed well year-to-date, reaching new all-time highs.

This report highlights the company’s continued success and demonstrates the value of Buffett’s long-term investing approach.