Even in a quarter marked by wildfire losses and currency headwinds, Warren Buffett’s Berkshire Hathaway continues to do what it does best play the long game. The company reported first-quarter results this weekend, revealing an all-time high in cash reserves at $347.7 billion. But the celebration was tempered by a 14% drop in operating profits and notable hits to the insurance and investment arms of the business.
The numbers tell a story of a company preparing for future opportunity while weathering the turbulence of today’s economy.
Earnings Slide as Insurance and Investments Take a Hit
Berkshire’s operating profit slipped to $9.64 billion, down from $11.22 billion a year ago. That translates to $6,703 per Class A share, a drop that caught the attention of analysts who’ve come to expect steady, if not spectacular, growth from the Omaha-based conglomerate.
Worse yet, net income plunged 64%, from $12.7 billion to $4.6 billion, driven in part by unrealized losses in its massive equity portfolio. The biggest drag? Its substantial stake in Apple, which stumbled amid market volatility in early 2025.
The most immediate hit came from Berkshire’s insurance segment, where $1.1 billion in claims tied to January’s Los Angeles-area wildfires ate into earnings. As a result, net income for the insurance business was nearly cut in half, falling to $1.34 billion.
Yet not all was bleak in the insurance division. Geico, Berkshire’s auto insurance brand, posted a 13% jump in pre-tax underwriting profit thanks to higher premiums and fewer claims suggesting that, even amid climate-related chaos, parts of the portfolio remain resilient.
Another drag on the quarter came from currency fluctuations. Berkshire booked a $713 million loss from foreign exchange movements a stark reversal from the $597 million gain recorded during the same period last year. The shifting value of the U.S. dollar hit Berkshire’s overseas investments hard, proving that even a company as diversified as Berkshire isn’t immune to global volatility.
Still, the real headline was Berkshire’s cash position: a record $347.7 billion, up from $334.2 billion at the end of 2024. While many companies would look to deploy that kind of capital, Buffett has held firm—unwilling to chase overpriced acquisitions or market froth.
In fact, Berkshire was once again a net seller of stocks during the quarter. It sold $4.68 billion worth of equities while buying only $3.18 billion marking 10 straight quarters of divestment. The company also refrained from repurchasing its own shares for the third consecutive quarter.
Though the company made minimal public comments on rising tariffs, their impact could be felt, particularly in the operations of BNSF Railway, Berkshire’s freight rail subsidiary. BNSF reported a 6% profit increase, likely driven in part by a rush in shipment volume as companies sought to move goods ahead of potential tariff hikes.
The firm’s quarterly filing did acknowledge that the uncertainty around trade remains a factor, though it stopped short of offering predictions about long-term effects.
One of the bright spots in the quarter was Berkshire Hathaway Energy, which delivered a 53% rise in profit. Gains were spread across energy generation, utilities, and even the company’s real estate brokerage, HomeServices, which appears to be stabilizing after a rocky housing market in 2024.
With climate resilience and infrastructure reliability becoming more vital, the energy business is quickly emerging as one of Berkshire’s steadiest performers.
At 94, Buffett shows no signs of abandoning his legendary investment philosophy. As Berkshire’s annual shareholder meeting approaches, the company stands as a fortress of value investing, cash discipline, and strategic patience.
Despite the dip in profits, Berkshire’s stock has outperformed the broader market in 2025 reinforcing its reputation as a safe haven for investors navigating economic uncertainty.
Berkshire Hathaway’s latest quarter may not have dazzled on the bottom line, but the firm’s underlying strength remains clear. Insurance losses and market volatility hurt short-term profits, yet the record-breaking cash stockpile signals readiness, not retreat.
In a world that increasingly prizes speed and risk, Buffett’s strategy of waiting for the right moment may once again prove to be the smartest move in the long run.
