Buffett’s Berkshire Profits Slide Ahead of Shareholder Meeting/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Buffett’s Berkshire Profits Slide Ahead of Shareholder Meeting/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Berkshire Hathaway’s first-quarter profits dropped sharply due to wildfire-related insurance losses and investment declines. As Warren Buffett prepares to address thousands of shareholders in Omaha, investors are eyeing his insights on the firm’s record $347.7 billion cash pile. Despite lower earnings, the annual meeting remains a must-attend event for Buffett followers.
Berkshire Hathaway Q1 Earnings Quick Looks:
- Berkshire Hathaway Q1 profit: $4.6B, down from $12.7B last year.
- Losses include $860M in wildfire-related insurance claims.
- Operating earnings fell 14% to $9.6B, still under expectations.
- Buffett’s cash reserves climbed to $347.7B — a record high.
- Buffett remains cautious on finding value investments.
- Thousands gather in Omaha for the annual shareholder meeting.
- 94-year-old Buffett remains the main draw, prompting global attendance.
- Berkshire owns Geico, BNSF, See’s Candy, and other iconic firms.
Deep Look: Warren Buffett’s Berkshire Sees Profit Dip Amid Wildfire Losses as Thousands Attend Annual Meeting
OMAHA, Neb. (AP) – As Warren Buffett prepares to address thousands of devoted shareholders at Berkshire Hathaway’s annual meeting, his conglomerate revealed a significant profit drop in the first quarter of 2025, largely due to wildfire-related insurance losses and volatile investment values.
Berkshire’s reported net earnings of $4.6 billion, or $3,200 per Class A share, represent a 64% decline compared to $12.7 billion a year ago. The sharp decline is tied to $860 million in losses from insurance policies issued before the catastrophic wildfires in Southern California, along with a drop in the value of its vast investment holdings.
Operating Earnings Down, But Still Key
Buffett, 94, has long urged investors to focus on operating earnings — a metric that excludes market fluctuations in its stock portfolio. Even by that preferred measure, Berkshire’s operating income slid 14%, falling to $9.6 billion, or $6,703.41 per Class A share.
Analysts surveyed by FactSet Research had projected $7,076.90 per Class A share, indicating results still came in under expectations.
Buffett’s famously conservative financial philosophy continues to dominate investor attention, especially amid global economic uncertainty and volatile equity markets.
Cash Pile Reaches $347.7 Billion
While profits fell, Berkshire’s cash reserves surged to a new high: $347.7 billion as of March 31, up from $334.2 billion at the end of 2024.
The growing war chest reflects Buffett’s reluctance to buy into overvalued markets, but shareholders will want to know if April’s post-tariff market dip tempted the Oracle of Omaha into any new investments.
Global Fans Gather for What Could Be Buffett’s Final Meeting
Despite the financial results, the spotlight remains firmly on Buffett himself. Thousands lined up for Saturday’s shareholder Q&A, known as “Woodstock for Capitalists.” Some, like Haibo Liu, even camped overnight to get a front-row seat.
“He has helped me a lot,” said Liu, who flew in from China for what may be Buffett’s final meeting. “I really want to express my thanks to him.”
This is Liu’s second trip to Omaha — and possibly his most emotional.
What Berkshire Owns
Berkshire’s empire spans a diverse portfolio of wholly owned businesses and stock investments, including:
- Geico (insurance)
- BNSF Railway
- Berkshire Hathaway Energy
- See’s Candies
- Retailers, manufacturers, and services across multiple sectors
Additionally, the firm holds major stakes in Apple, Coca-Cola, Bank of America, and other blue-chip stocks.
What to Expect From Buffett Today
Shareholders will be watching closely for:
- Comments on the market reaction to Trump’s tariffs
- Any hints about succession planning
- Investment strategies amid rising interest rates and geopolitical volatility
- Updates on share buybacks, a key component of Berkshire’s capital allocation
At age 94, Buffett remains active but has slowly begun handing more responsibilities to Greg Abel, his heir apparent. Nonetheless, Buffett’s insights remain a centerpiece of the annual gathering.
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