×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Skip to main content
Tags: Berkshire Hathaway Shareholders | Warren Buffett

Buffett Invests Big Chunk of Berkshire Hathaway's Cash

Buffett Invests Big Chunk of Berkshire Hathaway's Cash
Warren Buffett

Saturday, 30 April 2022 09:28 AM EDT

Berkshire Hathaway's first-quarter earnings fell more than 53% on a large swing on the paper value of its investments, but Warren Buffett found ways to put some of the company's massive cash pile to work, which will give shareholders something to talk about at Saturday's annual meeting.

Berkshire said it earned $5.46 billion, or $3.702 per Class A share, during the quarter. That’s down from $11.7 billion, or $7.638 per Class A share, a year ago.

But the key change during the quarter was that Berkshire's mountain of cash shrank to $106 billion from $147 billion at the beginning of the year as it invested $51 billion in equities. Buffett also spent $3.2 billion repurchasing Berkshire stock.

During the first quarter, Buffett agreed to buy the Alleghany insurance conglomerate for $11.6 billion and made multibillion-dollar investments in HP Inc. and Occidental Petroleum. However, he hasn't disclosed all of his stock purchases yet, so it's not immediately clear what else Berkshire invested in this year

But Berkshire did say that its stake in oil giant Chevron ballooned to $26 billion by the end of the quarter, up from $4.5 billion at the beginning of the year. Edward Jones analyst Jim Shanahan said that with the Chevron and Occidental investments combined Berkshire now has more than $40 billion invested in the oil sector.

But Berkshire said the value of its investments shrunk by $1.58 billion in the first quarter when a year ago that paper estimate of its investments grew by $4.7 billion. That accounted for most of the swing in net earnings.

Buffett says that Berkshire's operating earnings are a better measure of the company's performance because they exclude investment gains and losses. By that measure, Berkshire's earnings remained steady at $7.04 billion, or $4,773.84 per Class A share, up from $7.018 billion, or $4,577.10 per Class A share, a year ago.

That beat Wall Street expectations. The four analysts surveyed by FactSet expected Berkshire to report operating earnings of $4,277.66 per Class A share.

Berkshire said Saturday that profits improved at most of its businesses, including the railroad, utilities and manufacturing companies it owns, but underwriting income fell at its insurance companies.

In addition to investments, Berkshire Hathaway owns more than 90 business outright, including BNSF railroad, several major utilities, Geico insurance and an assortment of manufacturing and retail companies. Tens of thousands of shareholders were packing into an Omaha arena not far from the company's headquarters Saturday to listen to Buffett and Berkshire's vice chairmen spend hours answering any and all questions.

© Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


StreetTalk
Berkshire Hathaway's first-quarter earnings fell more than 53% on a large swing on the paper value of its investments, but Warren Buffett found ways to put some of the company's massive cash pile to work, which will give shareholders something to talk about at Saturday's...
Berkshire Hathaway Shareholders, Warren Buffett
423
2022-28-30
Saturday, 30 April 2022 09:28 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved
Download the NewsmaxTV App
NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved