Berkshire Hathaway’s first-quarter operating profit showed growth due to its insurance activities, with a 39 percent increase in operating profit to $11.22 billion. Warren Buffett, the investment company’s founder and CEO, reduced his holdings in Apple during this period but still held massive cash reserves. Despite recent acquisitions like an insurance company and shares in Occidental Petroleum, Buffett’s cash reserves have been consistently growing quarter after quarter.
The insurance businesses of Berkshire Hathaway were a significant driver of profitability, with Geico’s underwriting result seeing a substantial increase. Investment income in the insurance sector also grew significantly. While the first-quarter net profit fell by 64 percent from the previous year due to non-recurring entries, Berkshire Hathaway’s financial position remains strong. Buffett has consistently been known as the “Oracle of Omaha,” and his reduced holdings in Apple during the first quarter only confirm his status as one of the most successful investors in history.
Berkshire Hathaway bought back its own shares worth $2.6 billion during the first quarter due to a lack of suitable acquisition targets. The company reported record cash reserves of $189 billion, which have been consistently growing for several quarters now. While Buffett is known for his aggressive acquisition strategy, he has also shown that he is willing to wait patiently for opportunities that align with his investment philosophy.
