Warren Buffett‘s investment company Berkshire Hathaway recorded significantly more revenue on a yearly basis last quarter. It expanded its cash stock considerably, also strengthened the operating result. In addition, the ‘super investor‘ bought in billions of its own shares.
Berkshire reports a net profit of $11.71 billion, against a net loss of $49.75 billion a year earlier.
The equity investments of the world’s fourth largest listed company, with $254.6 billion turnover in 2020, increased 11% on a yearly basis in the first quarter. That is well above the broad S&P 500 index with largest companies, which offered 5.8% price increase.
The American conglomerate from Omaha in Nebraska, full of investments in shares of insurers, energy companies, commodity producers to railway and transport operators, reports in the run-up to the traditional shareholders‘ meeting on Saturday afternoon a total revenue increase in the first quarter to $64.4 billion.
The market here was counting on $63.66 billion in advance, due to possible setbacks due to corona.
Billions of cash
The operating result over those three months was $7.02 billion against $5.87 billion in the same period the year before.
Berkshire raised 5.2% more cash in the first quarter, reaching nearly a record of $145.4 billion.
In the explanatory statement this afternoon from Los Angeles, for the second time via a virtual shareholders’ meeting, the market is looking for indications of new investments made by Buffett (90) and his right-hand man Charlie Munger (97).
The vehicle purchased $6.6 billion of Berkshire‘s own shares, a small decline in pace compared to the fourth quarter ($9 billion purchases), after a record of $24.7 billion in purchases throughout the last corona year.
Stock results increased by $3.9 billion net over the past quarter, according to Berkshire. It sold more than it invested in stock.
Warren Buffett’s strategy, aimed at strong companies that have to show above average growth for decades, is being followed closely. When the Oracle of Omaha tips off a sector or company after long studies, many American investors follow him faithfully.
In recent years, Berkshire has already invested less than the strong cash flow gained by the conglomerate. Subsequently, it bought back substantial quantities of Berkshire shares, which was valued by shareholders because their holdings increased in value.