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Warren Buffett’s Berkshire Hathaway reported significantly lower profits Saturday morning, posting just over one-third of last year’s earnings—moments before thousands of shareholders poured into an Omaha arena to hear from the legendary investor himself.
The drop in profits was largely due to a steep decline in the value of Berkshire’s investments and $860 million in insurance losses tied to policies written by Geico and other insurance subsidiaries prior to the devastating Southern California wildfires.
In the first quarter, Berkshire reported net 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, during the same period last year, according to news agency AP.
However, Buffett has long urged investors to focus on operating earnings, which strip out the often-volatile swings in investment value. Berkshire is required to report those investment changes even if it hasn’t sold the stocks, which can distort the true performance of its businesses.
On an operating basis, earnings still fell 14%, landing at $9.6 billion, or $6,703.41 per Class A share, compared to $11.2 billion, or $7,796.47 per share, a year earlier. This also came in below analyst expectations—FactSet Research had forecast $7,076.90 per Class A share.
Despite the earnings dip, Buffett’s much-anticipated Q&A remains the centre-piece of Berkshire’s annual shareholder weekend. Investors are particularly eager for insight into why the company is now holding a record $347.7 billion in cash, up from $334.2 billion at the end of 2024. The growing cash reserve suggests Buffett has found few investment opportunities at attractive valuations lately, although the report doesn’t clarify whether any major purchases were made in April following a market dip triggered by a tariff announcement from former President Donald Trump.
The meeting’s draw remains strong—even emotional. Haibo Liu, a shareholder from China, camped outside the arena overnight to be first in line on Saturday morning. “He has helped me a lot,” Liu said of Buffett. “I really want to express my thanks to him.” Liu added that, with Buffett now 94 years old, he feared this might be his last opportunity to attend the event in person.
Berkshire Hathaway holds a vast and diverse portfolio, owning major companies like Geico, BNSF Railway, large-scale utilities, and a broad range of retail and manufacturing businesses, including iconic brands like See’s Candies. Its stock portfolio remains one of the largest and most closely watched in the financial world.
