Berkshire Hathaway, the investment company of Warren Buffett, reported strong first-quarter results with a 39 percent increase in operating profit to $11.22 billion. Despite recent acquisitions, such as an insurance company and shares in Occidental Petroleum, the company’s cash reserves continued to grow quarter after quarter, reaching a record $189 billion.
Buffett’s investment company’s insurance businesses were a significant driver of profitability in the first quarter. 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. However, the first-quarter net profit fell by 64 percent from the previous year due to non-recurring entries.
Despite this setback, Buffett’s financial position remains strong. He reduced his holdings in Apple during the first quarter but still remained Berkshire’s largest single stock holding. Berkshire Hathaway bought back its own shares worth $2.6 billion during the first quarter due to a lack of suitable acquisition targets.