Warren Buffett grows cash pile to $347.7 billion while Berkshire Hathaway profits fall on wildfire losses
Warren Buffett's company reported that more than one-third of last year's income on Saturday morning like thousands of Berkshire Hathaway shareholders were flowing to an Omaha Arena to listen to respected investor answers.
Revenue numbers weighted a major collapse in the value of its investments and $ 860 million in insurance losses related to the rules written by Geico and other insurance companies before the devastating wildfires of Southern California.
Berkshire said it gained $ 4.6 billion, or $ 3,200 per part of Class A, in the first quarter. That's from $ 12.7 billion, or $ 8,825 per part of Class A, last year.
But Buffett has long recommended that investors pay attention to Berkshire operating revenues as they do not include the value of its investments, which may vary from quarter to quarter. Berkshire should include the value of its investments in the bottom line numbers even if most of them have not sold it.
By that proposal, Berkshire's revenues still drop 14% to $ 9.6 billion, or $ 6,703.41 per part. Last year, the conglomery reported operating revenues of $ 11.2 billion, or $ 7,796.47 per part of class A.
Analysts reviewed by Factset Research predicted Berkshire will report operating revenues of $ 7,076.90 per part of Class A.
But Buffett's comments will be the main one on Saturday. Investors will find him to explain why Berkshire is now sitting at $ 347.7 billion cash to the end of the first quarter, from $ 334.2 billion by the end of the year. The growing cash pile is a reminder that the buffett has not found any investments at the attractive price of it -but the report does not show if he bought anything in April when the market collapsed after President Donald Trump's announcement.
Haibo Liu even camped overnight outside the arena overnight to be the first line Saturday morning. Liu said he remembered that this year Buffett could have been the last meeting since he was 94, so he made it a priority to attend his second meeting.
“She has helped her a lot,” said Liu, traveling from China to attend. “I really want to express my gratitude to her,” Liu said.
Berkshire Hathaway owns dozens of companies, including Geico, BNSF Railroad, a collection of massive utilities and an assortment of retail and manufacturing businesses including well-known brands such as See's Candy. It also holds a huge stock portfolio.
This story was originally featured on Fortune.com
