Berkshire Hathaway Reports Record Cash, 18% Operating Earnings Jump in First Abel Quarter
Berkshire Hathaway reported an 18% rise in operating earnings in its first quarter under new CEO Greg Abel, alongside record cash reserves and resumed share buybacks. The stock closed at $473.01, with a 46.0% return over three years.
Key Numbers
According to Simply Wall St., Berkshire Hathaway (NYSE:BRK-B) reported its first-quarter 2025 results, the first full quarter under new CEO Greg Abel. The company posted an 18% increase in operating earnings year-over-year, reaching record levels, while cash reserves also hit a record high. Berkshire resumed its share buyback program and completed a major acquisition during the quarter. Shares closed at $473.01, delivering a 46.0% return over three years and 62.6% over five years.
Key Financial Results
| Metric | Value | YoY Change |
|---|---|---|
| Operating Earnings | Not disclosed | +18% |
| Cash Reserves | Record high | Not specified |
| Stock Price (Close) | $473.01 | Not specified |
| 3-Year Return | 46.0% | — |
| 5-Year Return | 62.6% | — |
Highlights from the Report
- Leadership Transition: This is the first quarter after Greg Abel succeeded Warren Buffett as CEO, with Buffett remaining as Chairman.
- Share Buybacks: The company resumed its buyback program after a pause.
- Acquisition: A major acquisition was completed during the quarter, though details were not disclosed.
- Annual Meeting: Shareholders received detailed updates and commentary at the annual meeting.
Guidance
Berkshire did not provide specific numerical guidance for the upcoming quarter. Management reiterated a focus on long-term investments and maintaining substantial liquidity.
Impact on Stock
The stock has performed strongly over the long term, but the market is watching how Abel's strategy will affect future growth. The record cash pile may signal readiness for new acquisitions.
What This Means for Investors
The results demonstrate continuity of Berkshire's strong performance under new leadership. The large cash reserves provide flexibility to seize investment opportunities, though the lack of explicit guidance leaves some uncertainty about future direction.
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