Berkshire Hathaway earnings jump as cash pile nears $400B

Berkshire Hathaway (BRK.A, BRK.B) reported strong first-quarter results under CEO Greg Abel. Operating profit rose 18% to $11.35 billion, while net income more than doubled to $10.1 billion. Cash ended March at $380.2 billion, not including unsettled U.S. Treasury bill purchases. The article frames this as a continued “cash pile” approach: Berkshire sold $8.1 billion more equities than it bought, extending its 14th straight quarter as a net seller. A major reason is that Berkshire still hasn’t found enough large acquisition targets that match its preferred value profile as prices rise across public and private markets. In portfolio activity, Berkshire’s recent spending includes a $9.5 billion acquisition of Occidental Petroleum’s (OXY) chemical business in January. Berkshire also repurchased $234 million of its own shares—its first buyback since May 2024. On underlying operations, consumer-facing pressure persists. Greg Abel said insurance softening limits the “value” they can realize from related risk, with Geico facing price pressure amid intense competition. He described “unprecedented shopping activity” in auto insurance and said growth won’t restart easily. The article also highlights Warren Buffett’s remarks on market behavior, comparing today’s trading to “a church with a casino attached,” and criticizing one-day options as “gambling.” Buffett noted traders may chase loopholes rather than follow rules. Separate comments referenced Fed Chair Jerome Powell and the idea that economists can miss major risks from outdated assumptions.