Berkshire Hathaway earned $ 11.7 billion in the first quarter

Warren Buffett’s Berkshire Hathaway reported an increase in profits during the first quarter as its investment portfolio grew in size along with a broad market rebound and its broad group of companies rebounded from the depths. of the crisis of a year ago.

The company said Saturday it had made a profit of $ 11.7 billion from a loss of $ 49.7 billion the previous year, figures heavily influenced by changes in its $ 282 billion stock portfolio that includes big names like Apple and Bank of America.

Its main operating businesses, which include insurer Geico, the BNSF railway and the Dairy Queen ice cream chain, also improved. The operating profits of these companies increased 19.5% to $ 7 billion the previous year.

The company’s cash stack, which was closely examined, rose to $ 145.4 billion, from $ 138.3 billion by the end of 2020. Berkshire revealed it had spent $ 6.6 billion a quarter buying its shares. of class A and B, as it continued to direct much of its firepower toward repurchase shares.

The results come hours before Buffett and a trio of Berkshire executives address the company’s shareholders at an annual meeting that could turn out to be the most divisive in years.

A large number of major shareholders, including California employee pension fund Calpers and asset manager Neuberger Berman, have warned that they will withhold the votes of some directors who are part of the Berkshire board while driving the conglomerate. to adopt shareholder proposals focused on the social and the environment.

Buffett will be joined by Berkshire Vice Presidents Charlie Munger, Greg Abel and Ajit Jain at the annual meeting, which this year will take place from Los Angeles, away from Omaha’s usual place at the company’s center.

The coronavirus has prevented for the second year an annual meeting that normally attracted tens of thousands of Berkshire shareholders to the Midwestern city.

Berkshire Class A shares have risen 18.6% so far this year and closed on Friday at $ 412,500 per piece. The gain places the conglomerate ahead of the total return of 11.8% of the benchmark S&P 500, setting a path for Berkshire to eclipse broad market performance in a given year for the first time since 2018.