Warren Buffett's investment holding company Berkshire Hathaway achieved an operating profit of 11.222 billion US dollars in the first quarter of 2024, representing an increase of about 39 percent compared to the same quarter of the previous year. This remarkable result was driven especially by strong performance in the insurance business. Despite global uncertainties and the lack of major attractive investment opportunities, the holding company was able to increase its cash reserves to approximately 189 billion dollars, with Buffett expecting that this will exceed the 200 billion dollar mark after the current quarter.
On Saturday, the day after the quarterly results were published, the annual shareholders' meeting took place in Omaha, where, in addition to Buffett, his designated successor Greg Abel and Ajit Jain, Vice President of Insurance Operations, were present. This year marked the first meeting without Charlie Munger, Buffett's long-time business partner, who passed away at the end of last year.
The Annual Meeting was also the stage for Buffett's disclosure of his plans to hand over investment decisions to Greg Abel, although the Board of Directors will ultimately decide on the exact details of the succession. Buffett emphasized that he does not intend to retire soon.
In his annual report, Buffett pointed out the risks associated with Artificial Intelligence, particularly the potential for fraud through generated realistic forgeries. Despite the high cash reserves, Berkshire remains cautious regarding the current investment conditions.
In the past quarter, Berkshire also divested its stake in the Hollywood conglomerate Paramount and a portion of its Apple shares, which according to Buffett was for tax reasons and should not be interpreted as a comment on the future of these companies.
Berkshire Hathaway maintains its annual targets despite challenging market conditions and expects performance to continue stabilizing in the coming quarters. Investors responded positively to the announcements, and the stock strengthened in pre-market trading.
