Warren Buffett invests a lot of money in his company

The crowd was less than 40,000 in the past.

Berkshire Hathaway’s earnings fell more than 53 percent in the first quarter due to sharp fluctuations in the value of its investment, but its chairman and CEO Warren Buffett found ways to use some of the money in the company’s huge pile of cash.

Berkshire Hathaway said it earned $ 5.46 billion for the quarter, or $ 3.702 per Class A share. That’s less than $ 11.7 billion, or $ 7.638 per Class A share, a year ago.

The main change for the quarter was that the cash mountain Berkshire fell to $ 106 billion from $ 147 billion at the beginning of the year, when it invested $ 51 billion in shares. Warren Buffett also spent $ 3.2 billion to buy back Berkshire shares.

During the first quarter, Warren Buffett agreed to buy the insurance conglomerate Alleghany for $ 11.6 billion and made a multibillion-dollar investment in multinational information technology company HP and US hydrocarbon exploration company Occidental Petroleum. However, he has not yet disclosed all of his stock purchases, so it is unclear where Berkshire also invested this year.

However, Berkshire said its stake in oil giant Chevron reached $ 26 billion at the end of the quarter, up from $ 4.5 billion earlier this year. Edward Jones’ financial services analyst Jim Shanahan said that the joint venture between Chevron and Occidental Berkshire now has more than $ 40 billion invested in the oil sector.

However, Berkshire said its investment fell by $ 1.58 billion in the first quarter, up from $ 4.7 billion a year ago. This was the reason for most of the change in net income.

Warren Buffett says Berkshire’s operating profit is the best measure of a company’s performance because it excludes investment gains and losses. According to this figure, Berkshire’s earnings were unchanged at $ 7.04 billion, or $ 4,773.84 per Class A share, from $ 7.018 billion, or $ 4,577.10 per Class A share per year.

It exceeded Wall Street expectations. Four analysts polled by FactSet expected Berkshire to report operating income of $ 4,277.66 per Class A share.

Berkshire said on Saturday that profits had risen in most of its businesses, including railways, utilities and manufacturing, which it owns, but return on investment fell, its oil companies said.

According to Warren Buffett, the company was able to take advantage of a highly speculative environment on Wall Street.

“Berkshire is sometimes lucky to do something right, not because we are smart, but because we are smart,” he said.

Warren Buffett, 91, did not have to answer several questions about his estate. Last year, he said he would hand over the helm to Vice President Greg Abel. Two other investment directors will lend him a hand.

He said Berkshire’s decentralized culture relies heavily on the trust of people who do the right thing and avoid unnecessary risks. This will allow the company to prosper well in the future.

“Berkshire was founded forever. There will be no end point, said Warren Buffett. The following management and the following are the guardians of the culture integrated into the company ยป

In addition to investment, Berkshire Hathaway owns more than 90 businesses, including BNSF Railway, several large utilities, Geico Insurance, and a number of manufacturing and retail businesses.