Berkshire Hathaway Posts Strong Q1 Earnings, Record $397 Billion Cash Pile Under New CEO Abel
Berkshire Hathaway reported an 18% jump in first-quarter operating earnings, driven by insurance gains, while building a record cash reserve of $397.4 billion. Greg Abel, now CEO following Warren Buffett's retirement, highlighted the company's financial strength at its annual shareholder meeting.
Earnings and Cash Position
Operating profit surged 18% year-over-year from wholly owned units including insurance and railroads. Insurance underwriting led gains, climbing 28.5% to approximately $1.7 billion.
Record Cash Hoard
Berkshire accumulated a record $397.4 billion in cash, surpassing the previous high of $381.6 billion set in Q3 2025. This buildup came as the conglomerate was a net seller of equities, with roughly $24.1 billion in equity sales during the quarter versus $16 billion in purchases.
Leadership Transition
ABel emphasized the firm's freedom of movement, stating "We do not intend to be beholden to anyone." The cash position gives Berkshire significant flexibility for future investments or shareholder returns.
Stock Performance
Berkshire shares have fallen approximately 6% year-to-date, lagging the S&P 500's 5.6% gain.