Berkshire Hathaway sees increase in profit and cash reserves due to insurance gains in first quarter, nearing $200 billion.

At Extreme Investor Network, we provide you with the latest insights and updates on the finance and investment world. Today, we are excited to share with you the recent news about Berkshire Hathaway and Warren Buffett’s conglomerate.

Berkshire Hathaway shares saw a rise recently after reporting a surge in operating earnings along with a record cash hoard. The company’s Class A shares were up by 0.3%, while Class B shares gained about 0.4%. The first-quarter operating profit of $11.22 billion marked a 39% increase from the previous year, driven mainly by an increase in insurance underwriting earnings.

One of the key strengths for Berkshire Hathaway has been its insurance businesses, particularly Geico, which has seen a significant increase in earnings. Insurance underwriting earnings soared to $2.598 billion, a 185% jump from the year-ago period, with Geico earnings also rising by 174%.

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Warren Buffett, at the annual shareholder meeting, highlighted the improved earnings in insurance underwriting and the increased investment income due to higher yields. Berkshire’s cash hoard reached a record $188.99 billion in the first quarter.

Despite already outperforming the market this year, Wall Street analysts remain optimistic about Berkshire Hathaway’s future. UBS analyst Brian Meredith has a buy rating on the company, with a price target that is nearly 22% higher than the recent closing price. On the other hand, Edward Jones’ analyst James Shanahan has a hold rating, stating that the current stock price is fairly priced.

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