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In the first quarter, Berkshire Hathaway reported strong operating earnings and a record cash pile, highlighting the conglomerate’s health under Warren E. Buffett’s leadership. The results set a positive tone for the annual shareholder meeting in Omaha, marking the first gathering since the passing of longtime partner Charles Munger. Mr. Buffett emphasized the importance of judging Berkshire based on operating earnings rather than net income.
Despite a 64% decrease in earnings attributable to shareholders, driven by a paper value drop in the investment portfolio, Berkshire remains strong. The company trimmed its stake in Apple by 13% but expressed continued enthusiasm for the tech giant. Berkshire also sold its entire stake in Paramount Global, a decision made by Mr. Buffett himself.
Operating earnings saw a 40% increase, fueled by the insurance underwriting business’s success. However, BNSF railroad and Pilot Travel Centers reported lower earnings, and PacifiCorp faces investigations and lawsuits regarding wildfires.
The meeting addressed Berkshire’s cash reserve and potential investments, with Mr. Buffett emphasizing the importance of low-risk, high-profit opportunities. Despite uncertainties, Berkshire remains prepared to pay higher federal taxes. The absence of Mr. Munger was felt at the meeting, with Mr. Buffett paying tribute to his former partner.
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