Profits jump at Buffett's company ahead of annual meeting

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Warren Buffett's company said its first-quarter profits soared along with the paper value of its investment portfolio

— giving the thousands of shareholders who will fill an arena Saturday to listen to the billionaire and several other top executives"It's a once in a lifetime opportunity," said Chloe Lin, who traveled from Singapore to attend the meeting for the first time and learn from Buffett and hisBerkshire’s shareholders meeting always attracts throngs of people who admire the two investors and want to hear whatever wisdom they have to offer about recent events and life lessons.

Berkshire Hathaway said Saturday morning that it made $35.5 billion, or $24,377 per Class A share, in the first quarter. That's more than 6 times last year's $5.58 billion, or $3,784 per share. The three analysts surveyed by FactSet expected Berkshire to report operating earnings of $5,370.91 per Class A share.

Berkshire's insurance unit, which includes Geico and a number of large reinsurers, recorded a $911 million operating profit, up from $167 million last year, driven by a rebound in Geico's results. Geico benefitted from charging higher premiums and a reduction in advertising spending and claims. Berkshire again faces pressure from activist investors urging the company to do more to catalog its climate change risks in a companywide report. Shareholders were expected to brush that measure and all the other shareholder proposals aside Saturday afternoon because Buffett and the board oppose them, and Buffett controls more than 30% of the vote.

 

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