This is the first quarter managed by Greg Abel, the new CEO of the conglomerate, successor to the legendary Warren Buffett. After a slight decline at the end of last year, the company again increased its cash resources. The information appeared in the latest quarterly report published on Saturday, May 2.
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Berkshire Hathaway in the first quarter net sold shares worth USD 8.1 billion, which contributed to an increase in financial reserves. The company, which is based in Omaha, Nebraska, also noted operating profit of USD 11.35 billion, which means an increase of almost 18%. compared to the same period last year. “This is a significant increase that underlines the effectiveness of the conglomerate's investment strategy,” according to the company's statement on Saturday.
The company downplayed the importance of net income, which due to accounting rules includes unrealized gains and losses on shares, including those that Berkshire does not plan to sell.
Record results under new management
The first quarter under Greg Abel's leadership delivered significant financial results that strengthen Berkshire Hathaway's position as one of the most powerful investment conglomerates in the world. The increase in cash reserves and operating profits proves the effective implementation of the asset management strategy and a responsible approach to investment, comments Bloomberg.
Berkshire said it bought back $234 million of its own shares in the current quarter. This was it first share purchase from May 2024 No purchases were made during the first two weeks of April.
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Berkshire owns several dozen companies, including: Geico, BNSF Rail, Berkshire Hathaway Energy, Dairy Queen and See's Candies.
While Berkshire is sometimes considered a microcosm of the broader U.S. economy, the company's focus on insurance and hard assets makes it it is not keeping pace with broader market trends, including enthusiasm for artificial intelligence – writes Reuters. This may reflect poorly on the intuition of Berkshire's managers or reflect poorly on the prospects for the development of artificial intelligence.
Berkshire's Class A shares are down 5.9% in 2026, while the Standard & Poor's 500 Index is up 5.3%.
