Berkshire Hathaway’s first quarter operating profit showed growth, thanks to its insurance activities. Despite recent acquisitions, including an insurance company and shares in Occidental Petroleum, the company still holds massive cash reserves. Warren Buffett, known as the “Oracle of Omaha,” reduced his holdings in Apple during this period.
Despite a lack of suitable acquisition targets, Berkshire Hathaway bought back its own shares worth $2.6 billion in the first quarter. The company reported a 39 percent increase in operating profit to $11.22 billion in the first quarter, with insurance businesses being a significant driver of profitability.
The underwriting result of Berkshire Hathaway’s insurance holdings saw a substantial increase, primarily driven by Geico’s performance. Investment income in the insurance sector also grew significantly. While the first-quarter net profit fell by 64 percent from the previous year due to non-recurring entries, Berkshire Hathaway’s financial position remains strong.
Buffett’s reduced holdings in Apple during the first quarter were significant, but it still remained Berkshire’s largest single stock holding.