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Berkshire Hathaway (BRK) earnings Q1 2021

Warren Buffett.

Gerald Miller | CNBC

Berkshire Hathaway’s operating earnings rose again as conglomerate companies recovered from the pandemic hit. Chairman Warren Buffett continued to buy Berkshire shares aggressively back in the first quarter, but at a slightly slower pace.

Berkshire reported operating income of $ 7.01

8 billion. In the first quarter, an increase of 20% from 5.871 billion. $ In the same period a year ago. The conglomerate’s hodge-podge of companies, including insurance, transportation, utilities, retail and manufacturing, saw signs of a recovery in the midst of the economy again.

During the first quarter, the company bought 6.6 billion. Dollars in Berkshire shares after a record $ 24.7 billion. Dollars in buybacks last year instead of deal. The conglomerate registered DKK 9 billion. $ In share buybacks in fourth quarter.

Berkshire Hathaway’s cash pile grew about 5% in the quarter to more than $ 145.4 billion. Just below the record level at the end of the third quarter last year.

Buffett has sat on the sidelines as the environment that does so becomes more competitive and market values ​​become high. The legendary investor said at last year’s annual meeting that he has not seen anything attractive to pull the trigger on a significant acquisition, as he has done in the past.

Berkshire’s equity investments also recorded solid gains and rose approx. $ 4.69 billion. Dollars in the last quarter. However, Buffett has asked shareholders not to focus on quarterly fluctuations in investment gains and losses.

“The amount of investment gains (losses) in a given quarter is usually meaningless and provides figures for net earnings per share that can be extremely misleading for investors who have little or no knowledge of accounting rules,” Berkshire said in a statement.

Thanks to the buyback program and a recovery in its operating business, Berkshire’s “B” shares have risen more than 18% in 2021 to a record high.

The conglomerate’s total revenue came in at $ 64.6 billion last quarter, higher than Street’s estimate of $ 63.66 billion, according to Refinitiv.

Berkshire’s annual shareholders’ meeting starts on Saturday at 13:30 ET in Los Angeles with both Buffett and Vice President Charlie Munger present. The event is held almost without participants for the second time.

(Correction: Story corrects the amount of Berkshire’s investment gains in the first quarter.)

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