Buffett’s Berkshire sees profit fall amid wildfire losses, draws thousands to Omaha meeting

Warren Buffett’s Berkshire Hathaway reported considerably decrease earnings Saturday morning, posting simply over one-third of final yr’s earnings—moments earlier than thousands of shareholders poured into an Omaha area to hear from the legendary investor himself.
The drop in earnings was largely due to a steep decline within the worth of Berkshire’s investments and $860 million in insurance coverage losses tied to insurance policies written by Geico and different insurance coverage subsidiaries prior to the devastating Southern California wildfires.
In the primary quarter, Berkshire reported web earnings of $4.6 billion, or $3,200 per Class A share, sharply down from $12.7 billion, or $8,825 per Class A share, throughout the identical interval final yr, in accordance to information company AP.
However, Buffett has lengthy urged traders to concentrate on working earnings, which strip out the often-volatile swings in funding worth. Berkshire is required to report these funding adjustments even when it hasn’t bought the shares, which may distort the true efficiency of its companies.
On an working foundation, earnings nonetheless fell 14%, touchdown at $9.6 billion, or $6,703.41 per Class A share, in contrast to $11.2 billion, or $7,796.47 per share, a yr earlier. This additionally got here in beneath analyst expectations—FactSet Research had forecast $7,076.90 per Class A share.
Despite the earnings dip, Buffett’s much-anticipated Q&A stays the centre-piece of Berkshire’s annual shareholder weekend. Investors are notably longing for perception into why the corporate is now holding a file $347.7 billion in money, up from $334.2 billion on the finish of 2024. The rising money reserve suggests Buffett has discovered few funding alternatives at enticing valuations these days, though the report does not make clear whether or not any main purchases had been made in April following a market dip triggered by a tariff announcement from former President Donald Trump.
The meeting’s draw stays robust—even emotional. Haibo Liu, a shareholder from China, camped exterior the sector in a single day to be first in line on Saturday morning. “He has helped me a lot,” Liu stated of Buffett. “I really want to express my thanks to him.” Liu added that, with Buffett now 94 years previous, he feared this may be his final alternative to attend the occasion in individual.
Berkshire Hathaway holds an enormous and various portfolio, proudly owning main firms like Geico, BNSF Railway, large-scale utilities, and a broad vary of retail and manufacturing companies, together with iconic manufacturers like See’s Candies. Its inventory portfolio stays one of many largest and most intently watched within the monetary world.