Billionaire Warren Buffet-led Berkshire Hathway posts record operating profit

Buffet at Berkshire AGM: Investment guru and billionaire Warren Buffett's Berkshire Hathaway Inc registered a record quarterly profit on Saturday, buoyed by a significant increase in income from insurance underwriting. As per Berkshire, its net income fell 64 per cent, reflecting much lower unrealised gains from its common stock holdings as the share price of Apple declined. The global investment blue-chip also repurchased $2.6 billion of its own stock.

The Q1FY24 operating profit rose 39 per cent to $11.22 billion, or about $7,807 per Class A share, from $8.07 billion a year earlier. Berkshire’s net income fell to $12.7 billion, or $8,838 per share, from $35.5 billion. It is mandatory to have an accounting rule requires Berkshire to report unrealised gains and losses with net results. 

The results were released ahead of Berkshire's annual shareholder meeting in Omaha, part of a weekend that draws tens of thousands of people to the city. 

Billionaire Buffett to lead AGM

Known for his precision regarding global economic issues as well as his strong command over businesses, veteran investor Warren Buffett will take the centre stage in Omaha for Berkshire Hathaway's Annual Shareholder meeting. 
As the conglomerate prepares to pass the baton to its next generation of leaders, investors eagerly awaited insights into Berkshire's future direction and its strategies for deploying its substantial cash reserves.
Buffett (93), has been at the helm of Berkshire since 1965, and this marked his 60th shareholder meeting. While he has scaled back public appearances in recent years, his presence at the meeting was significant, signaling the importance of the occasion. 
Alongside Vice Chairman Greg Abel, who has been designated as Buffett's successor, and Vice Chairman Ajit Jain, Buffett fielded questions from shareholders for about five hours.
The meeting took place at a crucial juncture for Berkshire as it grappled with challenges such as sustaining growth without overpaying for acquisitions and deciding whether to initiate a dividend payout. With $167.6 billion in cash on hand, the conglomerate faces the task of allocating capital effectively in a rapidly evolving market landscape.

(With Reuters inputs)