Warren Buffett’s company is earning six times more than a year ago

Berkshire Hathawayis the signature of a billionaire Warren Buffettachieved net profit in the first quarter of 2023 of $35,504 million (€31,858 million), six times more than the $5,580 million generated in the same period last year, thanks in part to the recovery in insurance business.

Buffett’s company accounts have been particularly volatile since 2018 because of an accounting standard that took effect then that requires the inclusion of changes in the value of shares he owns, which, given his vast portfolio, causes large swings depending on the direction of the market.

Each year, his company’s statement usually includes a caveat to this effect: “The amount of investment gains/losses in a given quarter is often meaningless and yields earnings (loss) per share figures that can be misleading.” very misleading for investors with little or no knowledge of accounting standards.

For this reason, a well-known investor, who is very critical of these accounting rules, always points to operating profit as a more reliable way to see the progress of his company.

Taking these operational strengths into account, Berkshire Hathaway posted a profit of $8,065 million between January and March, up 12.6% out of 7,160 million registered in the first months of 2022.

The two sectors that improved the most were insurance, which recorded a profit of 911 million compared to 167 a year earlier, and investment insurance, which saw a profit of 1.969 million, which rose by 68%.

In a letter to investors, Buffett, also known as ANDl Oracle of Omahawhere his company is based, he recommended investing in two of his subsidiary companies, insurance companies Geiko and business of Borsheim jewelry.

In a statement, the company noted that approximately $4.4 billion was used in the first quarter to repurchase Berkshire’s Class A and Class B shares.

In electronic trading after the New York Stock Exchange closed yesterday, Company A shares were up 0.47%. So far this year, the company’s Class A shares are up 4.93%.