The company of Warren Buffett achieved a little more than a third of its profits from last year, it was announced on Saturday morning, while thousands of shareholders from Berkshire Hathaway rushed in an Omaha amphitheater, Nebraska, to listen to the investor answers questions.
The profits have been sealed by a sharp drop in the value of its investments and by US $ 860 million of insurance loss linked to the insurance policies subscribed by its companies before devastating fires in southern California.
Berkshire said it had made a profit of US $ 4.6 billion, or US $ 3,200 per class A share, in the first quarter. This is a drop compared to US $ 12.7 billion, or US $ 8,825 per share of class A, from last year.
Warren Buffett has long recommends investors to pay more attention to the operating results of Berkshire, as these exclude the value of its investments, which can vary considerably from one quarter to another.
Berkshire must include the value of his investments in his financial results, even if most of them have not been sold.
According to this measure, Berkshire’s profits were still down 14 %, to US $ 9.6 billion, or US $ 6703.41 per share A. Last year, the conglomerate announced operating profit of US $ 11.2 billion, or US $ 7796.47 per share A.
Mr. Buffett’s comments will however be at the heart of the debates on Saturday. Investors will expect from him that he explains why Berkshire now has US $ 347.7 billion in liquidity at the end of the first quarter, up compared to US $ 334.2 billion at the end of the year.
This increase in liquidity recalls that Mr. Buffett has not found investments at attractive prices in recent times, but the report does not indicate if he made purchases in April, when the market dropped after the announcement of customs duties by President Donald Trump.
Many Berkshire’s activities, such as the BNSF railroad and its various retail manufacturing and retail activities, tend to follow the evolution of the economic situation. Berkshire said on Saturday that his future results could be affected by geopolitical events and trade policy, but that it is impossible to predict what will happen.
“The pace of the evolution of these events, including international trade policies and customs duties, has accelerated in 2025. A considerable uncertainty remains as to the outcome of these events,” said Berkshire in his report.
Berkshire leaders are concerned about the potential impact of customs duties on their activity.
