Berkshire Hathaway Inc. reported a remarkable quarterly profit on Saturday, driven by robust performance in its insurance divisions.
Concurrently, the company seems to have divested a substantial portion of its Apple shares, resulting in a surge in its cash holdings to $189 billion.
Berkshire’s stake in Apple witnessed a 22 percent decline to $135.4 billion by March 31, down from $174.3 billion by the end of 2023, despite only an 11 percent decrease in Apple’s share price during the quarter.
This apparent significant sale marks a departure for Buffett, who has historically praised Apple’s market dominance and leadership. However, concerns have been raised by some investors regarding Apple’s disproportionately large presence in Berkshire’s investment portfolio.
In the first quarter, operating profit surged by 39 percent to $11.22 billion, equivalent to approximately $7,807 per Class A share, compared to $8.07 billion in the previous year.
Net income, however, witnessed a 64 percent decline to $12.7 billion, or $8,838 per share, down from $35.5 billion.
An accounting regulation necessitates Berkshire to report unrealized gains from its common stock holdings, a factor that Buffett advises investors to overlook due to resulting volatility.
During the quarter, Berkshire also engaged in stock buybacks, repurchasing $2.6 billion worth of its own shares, with additional repurchases occurring in the initial three weeks of April.
These financial results were revealed in anticipation of Berkshire’s annual shareholder gathering in Omaha, an event that attracts tens of thousands of attendees to the city.
