Berkshire: Criticism rises, operations below

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  • Berkshire Hathaway has missed profit estimates, but the number is severely affected by the markets of the stock market and does not reflect the health of work.

  • Operating profits, a better snapshot of what is going on inside business units, decreased by 14 % due to insurance batches and foreign exchange fluctuations.

  • Berkshire did not reproduce any shares in the quarter and ended the period with $ 347.7 billion in cash.

Here is our initial taking Berkshire Hathaway‘s (NYSE: BRK.B) (NYSE: BRK.A) Fiscal Year 2025 Financial Report in the first quarter.

metric

Q1 2024

Q1 2025

Changing

For expectations

profit

89.9 billion dollars

89.7 billion dollars

-0.2 %

Follow

Arrow profits (Category B)

$ 5.88

$ 2.13

-64 %

Follow

Operating profits

11.2 billion dollars

9.6 billion dollars

-14 %

us

Cash investments and short -term investments

334.2 billion dollars

347.7 billion dollars

4 %

us

Berkshire Hathaway’s profits per share decreased by 64 % on an annual basis, and Wall Street estimates. However, it should be noted that many followers of Berkshire – Warne Pavite himself – warn against investors who are highly dependent on him. This quarter is a good example of the reason for this.

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Berkshire is a mixture of operating companies and a huge investment portfolio. Under the accounting rules, the company must include unrealized gains and losses from this stock portfolio. This means that the company should report losses in the weak stock market even if it does not sell the shares.

In the first quarter of 2024, Berkshire booked $ 1.5 billion in “gains” of its investments. This quarter, on the other hand, recorded the same wallet “loss” of $ 5 billion. Berkshire Hathaway was a $ 1.5 billion seller of stocks of stocks in a quarter.

Other standards look better. Berkshire Hathaway has grown 4 %, or $ 13 billion, or $ 13 billion, during the past year. She did not re -buy any shares during the first quarter of 2025.

The actual operating companies of Berkshire have been slowed, but they were almost exciting as a number for each share. The company produced $ 9.6 billion of operating profits in the quarter, a decrease of 14 % from 11.2 billion dollars a year ago. Nearly one billion dollars of this decrease is the losses of foreign exchange and income from investments that you do not have directly by Berkshire.

The huge insurance business of the company produced mixed results, while reducing subscription profits in half, but the investment income rises slightly. Insurance companies have reported soft results in this quarter due to batches related to forest fires and other natural disasters in California.



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