Berkshire posts Q1 operating profit rise; cash near $380B

Berkshire Hathaway reported first-quarter operating profit rose 18% to $11.35 billion and net income increased to $10.1 billion. The results were released for the quarter ended March 31 under CEO Greg Abel.

The company reported operating profit equal to about $7,891 per Class A share and net income of about $7,027 per Class A share. Management cautioned that net income includes unrealized gains and losses on securities and should not be treated as the primary performance measure.

Cash and short-term investments totaled $380.2 billion at the end of March. That figure does not include some U.S. Treasury bill purchases that had not settled by quarter end.

Berkshire sold more stocks than it bought in the quarter, recording $8.1 billion more sales than purchases. The company has been a net seller of public equities for 14 consecutive quarters. Much of the selling activity involved trimming large stakes, including reductions in Apple.

The company made one major acquisition in January, paying $9.5 billion for Continental Resources’ chemicals business previously owned by Occidental Petroleum. Berkshire also repurchased $234 million of its own stock during the quarter, the first buyback since May 2024. No repurchases were recorded in the first two weeks of April.

Insurance operations were mixed. Abel told shareholders the insurance segment broadly performed better but competitive conditions are pressuring results. He described heavy price shopping by drivers at Geico and noted the company has tried to segment customers to balance rate increases with retention. He added that restarting growth at the unit will be difficult.

Other businesses that serve consumers showed uneven demand as households face higher costs and tighter spending. Berkshire’s holdings span insurance, energy, rail, retail, manufacturing and services, and several units reported softer consumer activity in the quarter.

At the annual meeting, Warren Buffett criticized speculative trading and compared current markets to “a church with a casino attached.” He characterized one-day options trading as “not investing” but “gambling,” and warned that aggressive speculation can push prices away from fundamentals. He also commented that some market participants find ways to avoid rules and that economists can miss major risks, noting older texts rarely addressed zero interest rates.

Company statements and transactions in the quarter — holding a large cash balance, trimming public equity positions, making a selective acquisition and limited buybacks — reflect its stated approach of waiting for large opportunities that meet its value criteria.