Mon May 05 13:30:00 UTC 2025: ## Berkshire Hathaway Reports Steep Drop in First-Quarter Earnings
**OMAHA, NE –** Berkshire Hathaway, Warren Buffett’s conglomerate, announced a significant decline in first-quarter operating earnings, falling 14% year-over-year to $9.64 billion. This translates to $4.47 per Class B share, missing analyst estimates of $4.72. The drop was primarily attributed to a 48.6% plunge in insurance-underwriting profit, largely due to a $1.1 billion loss stemming from Southern California wildfires. Further impacting the bottom line was a $713 million loss related to foreign exchange fluctuations, contrasting with a $597 million gain in the same period last year.
Berkshire cited President Trump’s tariffs and broader geopolitical uncertainty as contributing factors to the decline, stating that the impact of these tariffs is currently unpredictable. The company noted that macroeconomic and geopolitical events, including changes in international trade policies, have increased uncertainty and may further affect future results.
Despite the drop in operating earnings, Berkshire’s cash reserves reached a record high of over $347 billion. However, the company remained a net seller of stocks for the tenth consecutive quarter, indicating that Buffett did not capitalize on the first-quarter market downturn.
Overall earnings plummeted nearly 64% year-over-year, largely due to investment losses. Berkshire emphasized that investors should focus on long-term performance rather than interpreting these quarterly fluctuations.
Despite the weak quarterly results, Berkshire Hathaway’s Class A shares are up nearly 19% year-to-date, outperforming the S&P 500, which is down 3.3%. The company’s strong year-to-date performance stands in contrast to the broader market’s struggles amid tariff-related uncertainties.
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