Berkshire Hathaway Reports Steep Drop in Earnings at Annual Meeting

Warren Buffett’s company, Berkshire Hathaway, reported a significant drop in earnings due to a decrease in the paper value of its investments. However, despite this setback, the conglomerate’s many businesses performed well, with operating earnings jumping 39% to $11.222 billion. The company reported a $2.6 billion underwriting profit at its insurers, and most of its other companies delivered solid results.

The annual meeting, which drew tens of thousands of shareholders to an arena in Omaha, was missing a key figure this year: Vice Chairman Charlie Munger, who passed away recently. Munger was known for his witty one-liners and straightforward approach, complementing Buffett’s more expansive responses. Together, they transformed Berkshire into a massive conglomerate with a diverse portfolio of businesses.

With Munger’s absence, shareholders may have the opportunity to get to know the two executives who directly oversee Berkshire’s companies: Ajit Jain and Greg Abel. Abel, who will one day replace Buffett as CEO, is expected to play a more prominent role in the meeting this year.

Despite the challenges faced by Berkshire, experts believe the company has a solid culture and management roster ready to take over. Shareholders continue to look to Buffett for wisdom and guidance, even in the absence of his longtime partner Munger.

Overall, Berkshire’s performance remains strong, with revenue growing 5% to $89.87 billion in the quarter. The company’s massive cash pile continued to grow to a record $188.993 billion, reflecting the ongoing success of its various businesses. Shareholders remain optimistic about the future of the company under the leadership of executives like Greg Abel.