May 2025 – Mazor'sEdge

Berkshire Hathaway’s Q1 Profits Fall, But Core Businesses Stay Strong

(BRK.A), (BRK.B)

Berkshire Hathaway, the giant conglomerate led by Warren Buffett, reported lower profits in the first quarter of 2025, mainly due to fluctuations in its stock investments. The company posted $4.6 billion in net earnings—down sharply from $12.7 billion during the same period last year.

But the drop doesn’t tell the whole story. Much of it stems from accounting rules that require Berkshire to include paper losses on stocks it hasn’t sold yet. This quarter, those unrealized losses totaled about $7.4 billion.

To give a clearer picture of business performance, Berkshire also reports “operating earnings,” which leave out those investment swings. On that front, the company earned $9.6 billion in Q1—still strong, but slightly below the $11.2 billion it earned a year ago.

Some business highlights:

Insurance operations had mixed results, with investment income rising but underwriting profits falling.

The company’s railroad, BNSF, and energy division both posted solid gains.

Insurance float—a key financial cushion built from premiums Berkshire holds before paying claims—grew to $173 billion.

Earnings per share also reflected the dip: Class A shares earned $3,200 in Q1, compared to $8,825 last year, while Class B shares earned $2.13, down from $5.88.

Berkshire reminded investors that quarterly investment gains and losses don’t always reflect the company’s true strength. Long-term performance and solid fundamentals remain the real story.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Berkshire Hathaway Shares Hit Record High Ahead of Annual Meeting

(BRK.A), (BRK.B)

Excitement is in the air as Berkshire Hathaway shareholders flock to Omaha for the company’s annual meeting on May 3. The mood is especially upbeat with the stock hitting record highs—Class A shares closed Friday at $809,808.50, and Class B shares reached $539.80.

The annual meeting, often called “Woodstock for Capitalists,” will feature Berkshire’s first-quarter earnings release and a Q&A session with CEO Warren Buffett, along with top executives Greg Abel and Ajit Jain, offering insights into the company’s future.

This year’s event is also a time for reflection, marking the second annual meeting without Charlie Munger, Buffett’s longtime business partner. Though gone, Munger’s influence and wisdom remain deeply woven into Berkshire’s culture.