Berkshire Hathaway's Q1 Profit Rises 18%, Cash Nears $400 Billion

Warren Buffett's company, Berkshire Hathaway, increased its net profit by 18% in the first quarter of 2025 compared to the same period last year. The company's operating profit rose due to strong performance in its insurance and railroad businesses. Berkshire's cash and cash equivalents reached approximately $400 billion by the end of the quarter, marking the highest cash level in the company's history. The cash pile grew largely due to reduced share buybacks and income from certain investments. The company's insurance premium income and investment income played a significant role in the profit increase. Additionally, subsidiaries such as BNSF Railway and Berkshire Hathaway Energy provided steady contributions. However, some consumer-focused business lines experienced a slowdown in demand. Berkshire kept share buybacks limited during the quarter and remained a net seller of equities. The company continues to accumulate cash while awaiting a major acquisition opportunity. Buffett noted at the annual meeting that the high cash level is due to a scarcity of attractive valuation opportunities. This is not investment advice.