Warren Buffett’s Berkshire Hathaway Stories Drop in Earnings

The corporate’s monetary filings additionally confirmed that Berkshire had dramatically elevated its funding within the oil firm big Chevron to just about $26 billion on the finish of the primary quarter, up from simply $4.5 billion on the finish of 2021. That made Chevron Berkshire’s forth largest holding, behind Apple, Financial institution of America and American Categorical. Mr. Buffett has not too long ago been making large bets on the power sector. Final month, the corporate additionally purchased $7 billion in shares of Occidental Petroleum.

Gross sales and earnings at Berkshire’s working companies continued to rise within the quarter, bucking the general contraction in the U.S. economy within the first quarter. Economists mentioned, although, that the drop in gross home product hid some underlying energy within the U.S. financial system, and Berkshire’s working outcomes appeared to again that up. Income at Berkshire’s manufacturing and retail companies rose 16 p.c from the identical interval a 12 months in the past. Income at its railroad firm Burlington Northern, one of many largest freight networks in the US, have been up 9 p.c, once more reflecting continued enterprise exercise.

Berkshire’s combined first-quarter outcomes got here as tens of 1000’s of Mr. Buffett’s loyal buyers have flocked to Omaha, his hometown, for the corporate’s annual assembly. The Buffett-fest is a daylong folksy affair, usually known as “Woodstock for Capitalists,” wherein Mr. Buffett spends hours answering questions in entrance of a crowd within the metropolis’s downtown 17,000-seat area. Whereas there have been some empty seats, a number of company notables have been there, amongst them Tim Prepare dinner, Apple’s chief govt, and Jamie Dimon, the chief govt of JP Morgan Chase, in addition to Invoice Ackman, the pinnacle of the hedge fund Pershing Sq. Capital Administration, and the actor Invoice Murray.

A large convention room ground is stuffed with cubicles highlighting Berkshire’s many firms, and providing reductions on issues like containers of See’s Candies, additionally owned by Berkshire. Mr. Buffett mentioned on Saturday from the stage that See’s had introduced 11 tons of sweet to the shareholder assembly, and anticipated to promote out. Solely shareholders can attend in particular person. The assembly has been digital for the previous two years. Berkshire started streaming the assembly just a few years in the past, and can once more this 12 months.

Mr. Buffett, 91, faces a barely extra contentious annual assembly than standard, although Berkshire’s shares, up practically 8 p.c this 12 months, have outperformed the general market, which is down 13 p.c. “Traditionally, Berkshire shares have outperformed during times of financial misery as buyers made a ‘flight to high quality,’” Cathy Seifert, an analyst at CFRA Analysis who follows Berkshire, wrote in a be aware to purchasers this previous week.


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