{"id":3865,"date":"2023-05-08T04:03:45","date_gmt":"2023-05-08T09:03:45","guid":{"rendered":"https:\/\/embarrdowns.com\/berkshire-hathaways-q1-profit-soars-on-apple-stock-gains-and-insurance-rebound\/"},"modified":"2023-05-08T04:03:45","modified_gmt":"2023-05-08T09:03:45","slug":"berkshire-hathaways-q1-profit-soars-on-apple-stock-gains-and-insurance-rebound","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/berkshire-hathaways-q1-profit-soars-on-apple-stock-gains-and-insurance-rebound\/","title":{"rendered":"Berkshire Hathaway’s Q1 Profit Soars on Apple Stock Gains and Insurance Rebound"},"content":{"rendered":"

Warren Buffett’s Berkshire Hathaway Inc. has reported a first-quarter profit of $35.5 billion, largely driven by gains from common stocks like Apple Inc.[0]<\/a><\/sup> The company’s income from investments has also bolstered its operating profit, leading to an increase of 13% to $8.07 billion, or about $5,561 per Class A share, compared to $7.16 billion in the same period last year.[1]<\/a><\/sup> <\/p>\n

Berkshire Hathaway’s insurance business also rebounded, with Geico achieving a remarkable turnaround by generating $703 million in earnings. Higher average premiums earned, paired with lower advertising expenses and claim frequencies, contributed to this positive outcome.[2]<\/a><\/sup> With that frame of reference, Buffett commented that he expects the insurance sector to perform solidly, due to its relatively low correlation with economic business activity.[2]<\/a><\/sup> <\/p>\n

Berkshire Hathaway’s cash pile also swelled to more than $130 billion, up from $128 billion at the end of last year.[1]<\/a><\/sup> After subtracting purchases, the company earned $10.4 billion from selling equities in the quarter.[1]<\/a><\/sup> However, Berkshire also repurchased $4.4 billion worth of stock, the most since the first quarter of 2021, up from $2.8 billion at the end of last year, signaling the company’s confidence in its future prospects.[3]<\/a><\/sup> <\/p>\n

Despite the impressive earnings results, Buffett’s commentary about the economy somewhat conflicted with the earnings results of the Berkshire conglomerate, where operating earnings for Q1 2023 increased 13% YoY versus the respective period in 2022 despite the unfavorable economic backdrop.[2]<\/a><\/sup> From January to March, the Berkshire conglomerate generated $8.07 billion in operating earnings, with support from a rebounding insurance sector.[2]<\/a><\/sup> <\/p>\n

Berkshire Hathaway also sold an estimated $6 billion worth of Chevron stock last quarter, as disclosed in its earnings report.[4]<\/a><\/sup> However, the company continues to invest in stocks, with Buffett expressing his fondness for Apple, Berkshire’s largest equity position.[0]<\/a><\/sup> He commented that it’s \u201cbetter than any business\u201d Berkshire owns outright, and that the iPhone\u2019s \u201cmoat\u201d with consumers makes it an \u201cextraordinary product.\u201d <\/p>\n

As for first-quarter operating earnings, they came in at $8.065 billion, and insurance underwriting totaled $911 million.[0]<\/a><\/sup> Furthermore, Berkshire Hathaway’s insurance investment surged by a remarkable 68%, increasing from $1.170 billion to $1.969 billion.[5]<\/a><\/sup> Berkshire Hathaway’s portfolio experienced significant success with Geico, showcasing an underwriting profit of $703 million. <\/p>\n

How will Berkshire’s capital allocation and stock buyback policy be affected by the increase in cash reserves?[6]<\/a><\/sup> Is there a possibility for the company to declare a cash dividend for its common shares?[6]<\/a><\/sup> These questions remain to be answered, but with a succession plan in place and Vice Chairman Greg Abel scheduled to succeed Buffett as CEO, Berkshire Hathaway appears to be in good hands for the future.[7]<\/a><\/sup><\/p>\n

0. <\/span>“Berkshire Hathaway Posts $35.5 Billion Profit, Cash Rises to $130 Billion” Investopedia, 6 May. 2023, https:\/\/www.investopedia.com\/berkshire-hathaway-annual-meeting-2023-7494837<\/a><\/a><\/p>\n

1. <\/span>“Warren Buffett\u2019s Berkshire Hathaway reports solid rise in earnings after Geico finally swings to profitability” Fortune, 6 May. 2023, https:\/\/fortune.com\/2023\/05\/06\/warren-buffett-berkshire-hathaway-earnings-geico\/<\/a><\/a><\/p>\n

2. <\/span>“Berkshire Dumps Billions Worth Of U.S. Stocks, Buys Treasuries Instead (BRK.A) (BRK.B)” Seeking Alpha, 7 May. 2023, https:\/\/seekingalpha.com\/article\/4601257-warren-buffett-berkshire-hathaway-dumps-billions-worth-us-stocks-buys-treasuries<\/a><\/a><\/p>\n

3. <\/span>“Berkshire Hathaway Earnings: Acquisitions and Better Investment Performance Lift Overall Results” Morningstar, 6 May. 2023, https:\/\/www.morningstar.com\/articles\/1155694\/berkshire-hathaway-earnings-acquisitions-and-better-investment-performance-lift-overall-results<\/a><\/a><\/p>\n

4. <\/span>“Warren Buffett’s Berkshire Hathaway reveals it sold about $6 billion of Chevron stock last quarter” msnNOW, 7 May. 2023, https:\/\/www.msn.com\/en-in\/money\/markets\/warren-buffetts-berkshire-hathaway-reveals-it-sold-about-dollar6-billion-of-chevron-stock-last-quarter\/ar-AA1aRr5t<\/a><\/a><\/p>\n

5. <\/span>“Berkshire Hathaway Earnings \u2013 Is Buffett Losing Faith in U.S. Stocks?” TipRanks, 7 May. 2023, https:\/\/www.tipranks.com\/news\/berkshire-hathaway-earnings-is-buffett-losing-faith-in-u-s-stocks<\/a><\/a><\/p>\n

6. <\/span>“Berkshire Earnings Rise Solidly On Geico Revival; Warren Buffett Leads Shareholder Meeting | Investor’s Business Daily” Investor’s Business Daily, 6 May. 2023, https:\/\/www.investors.com\/news\/berkshire-earnings-q1-2023-brkb-stock-warren-buffett-esg<\/a><\/a><\/p>\n

7. <\/span>“Warren Buffett’s Berkshire Hathaway posts $35.5-billion Q1 profit, buys back more stock” Business Today, 6 May. 2023, https:\/\/www.businesstoday.in\/technology\/news\/story\/warren-buffetts-berkshire-hathaway-posts-355-billion-profit-buys-back-more-stock-380290-2023-05-06<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Warren Buffett’s Berkshire Hathaway Inc. has reported a first-quarter profit of $35.5 billion, largely driven by gains from common stocks like Apple Inc.[0]<\/a><\/sup> The company’s income from investments has also bolstered its operating profit, leading to an increase of 13% to $8.07 billion, or about $5,561 per Class A share, compared to $7.16 billion in the same period last year.[1]<\/a><\/sup> <\/p>\n

Berkshire Hathaway’s insurance business also rebounded, with Geico achieving a remarkable turnaround by generating $703 million in earnings. Higher average premiums earned, paired with lower advertising expenses and claim frequencies, contributed to this positive outcome.[2]<\/a><\/sup> With that frame of reference, Buffett commented that he expects the insurance sector to perform solidly, due to its relatively low correlation with economic business activity.[2]<\/a><\/sup> <\/p>\n

Berkshire Hathaway’s cash pile also swelled to more than $130 billion, up from $128 billion at the end of last year.[1]<\/a><\/sup> After subtracting purchases, the company earned $10.4 billion from selling equities in the quarter.[1]<\/a><\/sup> However, Berkshire also repurchased $4.4 billion worth of stock, the most since the first quarter of 2021, up from $2.8 billion at the end of last year, signaling the company’s confidence in its future prospects.[3]<\/a><\/sup> <\/p>\n

Despite the impressive earnings results, Buffett’s commentary about the economy somewhat conflicted with the earnings results of the Berkshire conglomerate, where operating earnings for Q1 2023 increased 13% YoY versus the respective period in 2022 despite the unfavorable economic backdrop.[2]<\/a><\/sup> From January to March, the Berkshire conglomerate generated $8.07 billion in operating earnings, with support from a rebounding insurance sector.[2]<\/a><\/sup> <\/p>\n

Berkshire Hathaway also sold an estimated $6 billion worth of Chevron stock last quarter, as disclosed in its earnings report.[4]<\/a><\/sup> However, the company continues to invest in stocks, with Buffett expressing his fondness for Apple, Berkshire’s largest equity position.[0]<\/a><\/sup> He commented that it’s \u201cbetter than any business\u201d Berkshire owns outright, and that the iPhone\u2019s \u201cmoat\u201d with consumers makes it an \u201cextraordinary product.\u201d <\/p>\n

As for first-quarter operating earnings, they came in at $8.065 billion, and insurance underwriting totaled $911 million.[0]<\/a><\/sup> Furthermore, Berkshire Hathaway’s insurance investment surged by a remarkable 68%, increasing from $1.170 billion to $1.969 billion.[5]<\/a><\/sup> Berkshire Hathaway’s portfolio experienced significant success with Geico, showcasing an underwriting profit of $703 million. <\/p>\n

How will Berkshire’s capital allocation and stock buyback policy be affected by the increase in cash reserves?[6]<\/a><\/sup> Is there a possibility for the company to declare a cash dividend for its common shares?[6]<\/a><\/sup> These questions remain to be answered, but with a succession plan in place and Vice Chairman Greg Abel scheduled to succeed Buffett as CEO, Berkshire Hathaway appears to be in good hands for the future.[7]<\/a><\/sup><\/p>\n

0. <\/span>“Berkshire Hathaway Posts $35.5 Billion Profit, Cash Rises to $130 Billion” Investopedia, 6 May. 2023, https:\/\/www.investopedia.com\/berkshire-hathaway-annual-meeting-2023-7494837<\/a><\/a><\/p>\n

1. <\/span>“Warren Buffett\u2019s Berkshire Hathaway reports solid rise in earnings after Geico finally swings to profitability” Fortune, 6 May. 2023, https:\/\/fortune.com\/2023\/05\/06\/warren-buffett-berkshire-hathaway-earnings-geico\/<\/a><\/a><\/p>\n

2. <\/span>“Berkshire Dumps Billions Worth Of U.S. Stocks, Buys Treasuries Instead (BRK.A) (BRK.B)” Seeking Alpha, 7 May. 2023, https:\/\/seekingalpha.com\/article\/4601257-warren-buffett-berkshire-hathaway-dumps-billions-worth-us-stocks-buys-treasuries<\/a><\/a><\/p>\n

3. <\/span>“Berkshire Hathaway Earnings: Acquisitions and Better Investment Performance Lift Overall Results” Morningstar, 6 May. 2023, https:\/\/www.morningstar.com\/articles\/1155694\/berkshire-hathaway-earnings-acquisitions-and-better-investment-performance-lift-overall-results<\/a><\/a><\/p>\n

4. <\/span>“Warren Buffett’s Berkshire Hathaway reveals it sold about $6 billion of Chevron stock last quarter” msnNOW, 7 May. 2023, https:\/\/www.msn.com\/en-in\/money\/markets\/warren-buffetts-berkshire-hathaway-reveals-it-sold-about-dollar6-billion-of-chevron-stock-last-quarter\/ar-AA1aRr5t<\/a><\/a><\/p>\n

5. <\/span>“Berkshire Hathaway Earnings \u2013 Is Buffett Losing Faith in U.S. Stocks?” TipRanks, 7 May. 2023, https:\/\/www.tipranks.com\/news\/berkshire-hathaway-earnings-is-buffett-losing-faith-in-u-s-stocks<\/a><\/a><\/p>\n

6. <\/span>“Berkshire Earnings Rise Solidly On Geico Revival; Warren Buffett Leads Shareholder Meeting | Investor’s Business Daily” Investor’s Business Daily, 6 May. 2023, https:\/\/www.investors.com\/news\/berkshire-earnings-q1-2023-brkb-stock-warren-buffett-esg<\/a><\/a><\/p>\n

7. <\/span>“Warren Buffett’s Berkshire Hathaway posts $35.5-billion Q1 profit, buys back more stock” Business Today, 6 May. 2023, https:\/\/www.businesstoday.in\/technology\/news\/story\/warren-buffetts-berkshire-hathaway-posts-355-billion-profit-buys-back-more-stock-380290-2023-05-06<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":3864,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/3865"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=3865"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/3865\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/3864"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=3865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=3865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=3865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}