Berkshire Hathaway's Chairman Warren Buffett to Step Down, Holding a Staggering $347.7 Billion in Cash, Anticipating Q2 Bargains
In a recent financial pillow fight, Berkshire Hathaway (NYSE: BRK.B, BRK.A) spilled its Q1 earnings before strutting its stuff at the annual powwow in Omaha. The financial spectacle, while meeting expectations in some aspects, showed a slight dip in operating income—tumbling about 14% year-over-year.
Warren Buffet, their financial Maverick Jack, continued tip-toeing around risk like a cat on a hot tin roof.
Now, onto the nitty-gritty of the 2025 scene. Here's what we know:
Pocketing Green Bills like Never Before
Berkshire's piggy bank was overflowing with a cool $347.7 billion by March 31, 2025, thanks to a surplus of $13.5 billion from Q4 2024. That's a colossal $240 billion more than in recent years. This whopping cash pile is the consequence of ten straight quarters of net stock sales, with $1.5 billion in Q1, adding up to a grand total of $173 billion over 2.5 years.
Passing The Baton
If you thought Warren was going to hang on forever, you might want to think again. He has announced his plan to retire as the big kahuna at the end of this very year and pass the torch to Greg Abel. In a surprising twist, Buffet made it clear that Abel should focus on slashing those cash reserves, either through buybacks, dividends, or acquisitions.
Operational Success Stories
- Berkshire Hathaway Energy: This division reported a 53% YoY growth in operating income, reaching a whopping $1.10 billion. The booming utility and rail industries played a significant role in this surge.
- Geico: Geico also pitched in, contributing to the improved insurance results, although the specifics were kept under wraps.
Bullish but Beware
Buffett kept his usual vocal self, reiterating concerns about overpriced equity markets. He pointed out the S&P 500's Shiller P/E ratio hitting a 20-year high. Despite his long-term optimism for the USA's economy, he warned folks against reckless gambling in the markets.
As for 2022 data, historical reports show Berkshire's Q1 2022 operating earnings amounted to $7.04 billion, with buybacks worth $3.2 billion, and a more modest cash reserves of around $106 billion. The 2022 meeting primarily revolved around succession planning and inflation worries. But we won't bore you with details from years gone by—this post focuses on the 2025 showdown.
Shortly, Buffett's Berkshire Hathaway will reveal their Q1 2025 earnings, following the 2025 shareholder meeting. Despite Q1 showing a slight dip in operating income, the company reported a substantial increase in cash reserves, totaling $347.7 billion by March 31, 2025. Berkshire Hathaway Energy reported a 53% year-over-year growth in operating income, while Geico contributed to improved insurance results. Despite Buffett's optimism for the USA's economy, he expressed concerns about overpriced equity markets, particularly the S&P 500's Shiller P/E ratio reaching a 20-year high.
