Warren Buffett’s Berkshire Hathaway reported a 14% drop in first-quarter operating profit on Saturday, as insurance losses from January’s Los Angeles-area wildfires and foreign currency headwinds weighed on results. Despite the setback, the company’s cash reserves swelled to a record $347.7 billion, highlighting its continued struggle to find attractive investment opportunities.
The Omaha-based conglomerate posted operating earnings of $9.64 billion, or about $6,703 per Class A share, down from $11.22 billion in the same period last year. Net income plunged 64% to $4.6 billion, or $3,200 per Class A share, from $12.7 billion, largely due to unrealized losses on equity holdings, including tech giant Apple.
The company revealed that it bought $3.18 billion of stock and sold $4.68 billion, continuing a trend of net selling for the tenth consecutive quarter. It also refrained from repurchasing any of its own shares for the third quarter in a row.
Berkshire addressed the broader economic backdrop only briefly, noting in its quarterly filing that “considerable uncertainty remains” regarding U.S. President Donald Trump’s tariff policies. The report added that Berkshire is “unable to reliably predict” the impact of tariffs on its product costs, supply chains, or customer demand.
Wildfire-related insurance claims amounted to $1.1 billion, cutting Berkshire’s overall insurance earnings nearly in half to $1.34 billion. However, Geico showed resilience, with higher premiums and fewer accident claims driving a 13% increase in pre-tax underwriting profit.
Foreign currency fluctuations also impacted the quarter, with Berkshire booking $713 million in losses due to a weakening U.S. dollar—compared to a $597 million gain a year ago.
The results precede the company’s annual shareholder meeting in Omaha, which draws tens of thousands of investors. Buffett, 94, remains at the helm after six decades, having transformed Berkshire from a textile manufacturer into a vast conglomerate with businesses ranging from Geico and BNSF Railway to Dairy Queen and See’s Candies.
While profits declined in some areas, other segments benefited from the shifting economic landscape. Tariffs appeared to temporarily boost BNSF Railway, where profit rose 6% amid higher volumes of consumer goods and automobiles—suggesting a rush to ship imports before new duties took effect.
Berkshire Hathaway Energy saw profits jump 53%, driven by broad-based gains and reduced losses at its HomeServices real estate arm. Meanwhile, manufacturing, service, and retailing businesses reported a modest 1% decline in profit. Car dealerships saw improved vehicle sales, but home furnishings and other retail operations faced “increased competition, sluggish demand and impacts of higher economic uncertainty,” the report said.
