Berkshire Hathaway's operating earnings jump, Buffett continues to buy back stock

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The latest results arrived as Berkshire's 'B' shares rallied more than 18% in 2021 to reclaim its record high.

's operating earnings rebounded as the conglomerate's businesses recovered from the pandemic hit. Chairman Warren Buffett kept buying back Berkshire shares aggressively in the first quarter, but at a slightly slower pace.

Berkshire reported operating income of $7.018 billion in the first quarter, up from $5.871 billion in the same period a year ago. The conglomerate's hodge-podge of businesses including insurance, transportation, utility, retail and manufacturing saw signs of a recovery amid the economy reopening. During the first quarter, the company bought back $6.6 billion of Berkshire shares, after a record $24.7 billion in buybacks last year in lieu of deal-making. The conglomerate recorded $9 billion in share buybacks in the fourth quarter.

Berkshire's equity investments also registered solid gains, increasing approximately $2.8 billion last quarter. However, Buffett told shareholders to not focus on quarterly fluctuations in investing gains and losses. "The amount of investment gains in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading to investors who have little or no knowledge of accounting rules," Berkshire said in a statement.

 

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I've always liked Buffett, but when they are sitting in $140B+ in money, and can't buy back stock fast enough, couldn't some of that money to towards increased wages to the workers?

nice

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