legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Warren Buffett’s Berkshire Hathaway Reports Earnings Drop

OMAHA, Neb. (AP) — Warren Buffett’s Berkshire Hathaway reported a steep drop in earnings Saturday as the paper value of its investments plummeted and it pared its Apple holdings. Nevertheless, tens of thousands of shareholders looked forward to hearing from Buffett directly, buoyed by a jump in performance of the many companies Berkshire operates directly.

Berkshire reported a $12.7 billion profit, or $8.825 per Class A share, in first the quarter, down 64% from $35.5 billion, or $24,377 per A share a year ago.

Buffett encourages investors to pay more attention to the conglomerate’s operating earnings that exclude the investment figures. Operating earnings jumped 39% to $11.222 billion, or $7,796.47 per Class A share, led by insurance companies’ strong performance. By that measure, Berkshire beat expectations of the three analysts surveyed by FactSet Research, who had predicted operating earnings of $6,701.87 per Class A share.

As part of Buffett’s stock sales, he trimmed about 13% of Berkshire’s massive Apple stake. Holdings in the iPhone maker are still Berkshire’s biggest stake, making up $135.4 billion of the company’s $364 billion portfolio. Buffett said he expects Apple to remain the biggest investment for years, even when his successor Greg Abel eventually takes over.

As for Berkshire’s core insurance businesses, the conglomerate reported a $2.6 billion underwriting profit at its insurers, up from $911 million a year ago.

BNSF railroad’s profits dropped 8% to $1.143 billion, but most of Bershire’s many other companies delivered solid results. The utility unit experienced a 72% jump in operating profit, adding $717 million to earnings. Cash on hand rose to a record $188.993 billion in the quarter. “We’d love to spend it but we won’t spend it unless we’re doing something with very little risk that will make us a lot of money,” Buffett said.

AI legalese decoder: Simplifying legal Language

With the help of the AI legalese decoder, understanding legal contracts, statements, and information becomes easier and more accessible. By utilizing advanced AI technology, the decoder can break down complex legal jargon into clear and understandable language. This tool can be immensely beneficial for investors, shareholders, and individuals looking to navigate the intricacies of legal documents related to investments, financial reports, and more. By using the AI legalese decoder, individuals can gain a better grasp of complex legal terms and make informed decisions in the realm of finance and investments.

THOUSANDS ATTEND ‘WOODSTOCK FOR CAPITALISTS’

Tens of thousands filled the arena eager to vacuum up tidbits of wisdom from Buffett, who famously dubbed the meeting ‘Woodstock for Capitalists.’ But a key ingredient is missing this year: It’s the first meeting since Vice Chairman Charlie Munger died.

The meeting opened with a video tribute highlighting some of his best known quotes, including classic lines like “If people weren’t so often wrong, we wouldn’t be so rich.” The video also featured classic skits the investors made with Hollywood stars over the years, including a “Desperate Housewives” spoof where one of the women introduced Munger as her boyfriend and another in which actress Jaimie Lee Curtis swooned over him.

As the video ended, the arena erupted in a prolonged standing ovation honoring Munger, whom Buffett called “the architect of Berkshire Hathaway.” Buffett said Munger remained curious about the world up until the end of his life at 99, attending dinner parties, meetings and regular Zoom calls. “Like his hero Ben Franklin, Charlie wanted to understand everything,” Buffett said.

For decades, Munger and Buffett functioned as a classic comedy duo, with Buffett offering lengthy setups to Munger’s witty one-liners. He once referred to unproven internet companies as “turds.” Together, the pair transformed Berkshire from a floundering textile mill into a massive conglomerate.

THE NEXT GENERATION OF LEADERS

Munger’s absence created space for shareholders to get to know better the executives who oversee Berkshire’s companies: Ajit Jain, who manages the insurance units, and Abel, who handles everything else and has been named Buffett’s successor. Abel and Jain shared the main stage with Buffett for the first time this year.

The first time Buffett kicked a question to Abel, he mistakenly said “Charlie?” Abel shrugged off the mistake and dove into the challenges utilities face from the increased risk of wildfires and some regulators’ reluctance to let them collect a reasonable profit. Morningstar analyst Greggory Warren said he hopes Abel will speak up more this year and let shareholders see some of the brilliance Berkshire executives talk about. “Greg’s a rock star,” said Chris Bloomstran, president of Semper Augustus Investments Group.

ANYTHING AND EVERYTHING

As always, Buffett addressed a variety of topics Saturday, though he never talks politics or reveals what he is buying. He described a recent uneasy experience with artificial intelligence, saying he saw a fake image of himself delivering a message in his voice about something he said he would never say. He predicted the technology will be a boon for scammers. On climate change, Jain said it’s creating larger losses for insurance companies and driving up prices. Overall, Buffett said Berkshire’s system of having all the noninsurance companies report to Abel and the insurers report to Jain is working well. “This place would work extremely well the next day if something happened to me,” Buffett said.

For more AP coverage of Warren Buffett, click here. For Berkshire Hathaway news, see here.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link