BRK.A
OXY
The earnings were strong. The vibes? Still cautious.
Berkshire Hathaway just turned in a pretty chunky first quarter: net earnings attributable to shareholders jumped to $10.106 billion, more than double last year’s $4.603 billion. Operating profit came in at $11.346 billion, up from $9.641 billion, which is the part of the story that matters more than the headline accounting noise.
Why the market still feels a little “meh”? Because Berkshire is basically sitting on a $373 billion cash pile like a giant hedge fund with commitment issues. The company’s stock has also lagged the broader market, and that disconnect is doing a lot of work in the investor conversation right now.
The operating engine still hums
A few pieces inside the machine were doing their job:
- Insurance underwriting: $1.717 billion, up from $1.336 billion
- BNSF railroad: $1.377 billion, up from $1.214 billion
- Berkshire Hathaway Energy: $1.114 billion, basically flat but still solid
- Manufacturing, service and retailing: $3.199 billion, up from $3.060 billion
Investment gains were a drag on net earnings, but Berkshire keeps reminding everyone that GAAP can turn quarterly results into a bit of a magic trick. Unrealized equity swings flow through the income statement, which means the headline number can look wildly better or worse depending on the market mood.
The real question: what does Berkshire do with all that cash?
This is where the plot thickens. Shareholders aren’t just celebrating a good quarter; they’re watching the handoff to Greg Abel and asking the classic Berkshire question: what’s the next big move?
A few things are shaping the debate:
- Berkshire restarted buybacks in March after pausing since May 2024
- The company is still earning meaningful income from Treasury bills and short-term investments
- Investors want to see whether capital allocation gets more aggressive under new leadership
Big picture: Berkshire still looks like a fortress, but the market is basically saying, “Cool cash pile. Now show me the plan.”