Warren Buffett's Berkshire Hathaway reported strong first-quarter earnings and another big increase in cash Saturday , with the billionaire investor expecting further increases ahead during the company's annual shareholder meeting. BRKB stock rose slightly Monday.
Berkshire Earnings
Operating earnings jumped 39% to $11.222 billion, fueled by big gains in insurance underwriting and insurance investment income. Revenue rose 5% to $89.87 billion.
Analysts expected operating earnings per share to rise to $4.47, with revenue up 2% to just over $87 billion.
Total net income, which includes investment gains or losses, plunged 64% to $12.702 billion. But it was expected to dive 72%.
Warren Buffett, speaking at the annual shareholder meeting, expects "modest" growth in operating earnings for the full year.
Buybacks, Cash Levels
Berkshire bought back $2.6 billion worth of its own shares. In, Warren Buffett's conglomerate repurchased $2.2 billion of its own shares, bringing the 2023 total to $9.2 billion.
Berkshire's cash swelled to a fresh record of $188.99 billion, up from Q4's $167.6 billion and Q3's $157.2 billion.
Warren Buffett expects cash levels to hit $200 billion by the end of June.
"We'd love to spend it, but we won't spend it unless we think they're doing something that has very little risk and can make us a lot of money," he said.
Berkshire Cuts Apple Stock Holdings
Warren Buffett and his investment team cut Berkshire's massive Apple stake for a second straight quarter. The company reported its Apple stake was worth $135.4 billion at the end of Q1, signaling a 13% decline in shares held to about 790 million. In Q4, Berkshire trimmed its Apple stake by 10 million shares.
The Apple stock trim is likely a reason for Berkshire's big cash increase.
Apple has been Berkshire's biggest investment for several years. Buffett expects that to continue "unless something dramatic happens that really changes capital allocation."
This is the first shareholder meeting without Buffett's longtime No. 2, Charlie Munger, who died last year. Vice Chairman of Non-Insurance Operations Greg Abel, Buffett's designated successor, will answer questions with Buffett on Saturday.
Berkshire Stock
Berkshire stock rose 1% to 404.92 in Monday trading, still below the 50-day line.
Shares edged down 0.3% in last week's stock market trading. BRKB stock has a 430 flat-base buy point. Investors could use a decisive move above the 50-day as an early entry point.
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