Berkshire Hathaway reports fall in returns, driven by investment losses

Berkshire has increased its investment in oil company Chevron to nearly $ 4.5 billion at the end of the first quarter and $ 4.5 billion at the end of 2021. This is Chevron Berkshire’s fourth largest holding. Behind Apple, Bank of America and American Express. Mr. Buffett has been making big challenges in the energy sector lately. Last month, the company bought $ 7 billion worth of shares in Occidental Petroleum.

Sales and profits in Berkshire’s operating businesses continued to rise quarterly and overall. Summary of the US Economy In the first quarter. However, economists say that the fall in GDP has obscured some fundamental strength in the US economy and that Berkshire’s operating results support it. Berkshire’s manufacturing and retail profits rose 16 percent from the same period a year earlier. Burlington Northern, one of America’s largest freight networks and its rail company, saw a 9 percent increase in profits, reflecting continued business activity.

Berkshire’s mixed first-quarter results, Mr. Buffett’s tens of thousands of loyal investors have flocked to his hometown of Omaha for the company’s annual meeting. Buffet-fest is a day-long folk affair that is often referred to as the “Woodstock for Employers”, in which Mr. Buffett will answer questions for hours before a meeting in the city’s downtown 17,000-seat arena. While some of the seats were vacant, there were several corporate dignitaries, including Tim Cook, Apple’s CEO, and Jamie Dimon, CEO of JPMorgan Chase, and Bill Ackman, Head of Hedge Fund Pershing Square Capital Management. , And actor Bill Murray.

A large conference room floor is packed with booths highlighting Berkshire’s many companies, and offers discounts on boxes of cheese candies owned by Berkshire. Mr. Cheese brought 11 tons of candy to the partner meeting and it is expected to be sold out. Buffett said from the podium on Saturday. Only shareholders can attend in person. The meeting has been in a virtual state for the past two years. Berkshire started streaming crowds a few years ago, and will be back again this year.

The 91-year-old Mr. Buffett’s Berkshire shares are up nearly 8 percent, down 13 percent, and are facing slightly more controversial annual meetings than usual, despite performing better than the overall market. “Historically, Berkshire stocks performed better because investors’ ‘flew to quality’ during the economic crisis,” Cathy Seifert, a researcher at CFRA research following Berkshire, wrote in a note to clients last week.

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