Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Berkshire Hathaway’s Q1 Results Marred By Issues At Geico

By Anna Peel. Originally published at ValueWalk.

Berkshire Hathaway Adaptability NYSE:BRK.A NYSE:BRK.B Warren Buffett Gates Foundation NYSE:BRK.B Good Billionaire Buffett Tax Code NYSE:BRK.A fish barrel Annual Meeting Berkshire Snowball Berkshire Meeting Annual Letter Buffett Value Investing Syndrome Buffett Buying Decisions Common Stock Markets buffett Barrick Gold BAC Buffett Screener greatest trade ever Buffett SEC Filing berkshire hathaway subsidiaries Dominion Energy Hauptsache sins of omission gruesome stocks Berkshire Hathaway markets volatile market business interruption insurance Valuation Model For Berkshire warren buffett index funds Berkshire Hathaway's Future Warren Buffett coronavirus Billionaire Investor Warren Buffett Berkshire Hathaway chairman and CEO Warren Buffett interview NASDAQ:AAPL shares of apple warren buffett index funds Warren Buffett estimate of intrinsic value

Morningstar Equity Analyst Greggory Warren: Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B)’s Q1 Results Marred by Issues at Geico; Stock Investments Outpace Share Repurchases

Morningstar published its updated analyst note for Berkshire Hathaway after yesterday’s annual meeting.

With wide-moat Berkshire Hathaway reporting first-quarter results that were more or less in line with our forecasts, we are leaving our $550,000 ($367) per Class A (B) share fair value estimate in place. First-quarter reported revenue, which includes unrealized and realized gains/losses from Berkshire’s investments and derivatives portfolios, declined 3.2% to $68.0 billion from $70.3 billion in the prior year’s period). Excluding the impact of investment and derivative gains/losses and other adjustments, first-quarter operating revenue increased 9.6% to $70.8 billion.


Q1 2022 hedge fund letters, conferences and more

Berkshire Hathaway’s Earnings

Operating earnings, exclusive of the impact of investment and derivative gains/losses, increased 0.3% year over year to $7.0 billion during the March quarter. While most of the company’s segments posted solid operating earnings growth, the insurance segment was dragged down by larger than normal increases in both the frequency and severity of claims at Geico, which left underwriting results in negative territory. When including the impact of the investment and derivative gains/losses, reported operating earnings declined 53.4% to $5.5 billion from $11.7 billion in the prior year’s period.

Book value per share, which still serves as a decent proxy for measuring changes in Berkshire’s intrinsic value, increased 0.6% sequentially to $344,572 (from $342,622 at the end of December 2021), slightly above our forecast of $338,339. The company closed out the March quarter with $106.3 billion in cash and cash equivalents, down from $146.7 billion at the end of last year. This left Berkshire with an estimated $71.0 billion in dry powder that could be committed to investments, acquisitions, and share repurchases. During the March quarter, the company invested (net of sales) $41.4 billion in equity securities, which included Occidental Petroleum and Chevron (but likely not HP), and also repurchased $3.2 billion of its own common stock. We welcome this meaningful reduction of the company’s cash balances.

Updated on

Sign up for ValueWalk’s free newsletter here.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!