May 4 (UPI) — Berkshire Hathaway, led by Warren Buffett, reported first-quarter earnings of $11.2 billion on Saturday, along with record-high cash reserves totaling $189 billion.
The cash reserves increased from $167.6 billion in the fourth quarter of last year, reflecting the company’s inability to find suitable business targets for significant acquisitions in 2024. This was noted in the earnings statement released during the annual shareholders’ meeting in Omaha, Nebraska.
The $11.2 billion in first-quarter earnings marked a 39% increase over last year’s first-quarter earnings of $8.9 billion, largely due to a surge in earnings from Berkshire Hathaway’s insurance underwriting business.
First-quarter earnings were buoyed by a 185% increase in earnings from insurance underwriting, which rose to nearly $2.6 billion from $911 million in the first quarter of 2023. Subsidiary GEICO posted underwriting earnings of $1.93 billion, a 174% increase from $703 million in the same period last year.
Berkshire Hathaway’s insurance investment income also saw significant growth, reaching $2.5 billion, a 32% increase from a year earlier.
During a question-and-answer session with shareholders, the 92-year-old “Oracle of Omaha” advised investors to take the insurance results with “a grain of salt,” warning of a potential downturn in the third quarter, according to CNBC. Buffett also commented on developments in artificial intelligence and renewable energy, noting that future investment decisions for the conglomerate will be managed by Greg Abel, vice chairman for non-insurance operations and Buffett’s presumptive successor.
In his closing remarks, Buffett said, “I not only hope you come next year, but I hope I come next year as well.”
